US stocks finished lower on Friday, concluding a week marked by erratic crude oil prices and growing inflation concerns stemming from the conflict in Iran.
The major US stock indexes all recorded daily and weekly declines. The small-cap Russell 2000 closed at its lowest point of the year.
Crude oil prices fluctuated, ultimately rising despite temporary easing of sanctions on Russian oil. "It's very much an emotional market," noted Paul Nolte, senior wealth advisor & market strategist. "You just sit back and wait for things to unfold and to settle."
Front-month WTI crude futures settled at $98.71 per barrel, and Brent crude rose to $103.14. The International Energy Agency warned the war will cause the largest-ever disruption in global crude supply.
Economic indicators showed a sharp downward revision to fourth-quarter GDP growth and weakening demand for durable goods. Despite softer data, the US Federal Reserve is expected to hold interest rates steady next week. "Inflation remains elevated, and with the possibility of energy prices eventually moving into the pipeline, the Fed is likely to stay on hold for a longer period of time,” said Peter Cardillo, chief market economist.
The Dow Jones Industrial Average fell 0.26 percent, the S&P 500 lost 0.61 percent, and the Nasdaq Composite dropped 0.93 percent.
Technology shares posted the largest percentage loss among S&P 500 sectors. Adobe <ADBE.O> fell 7.6 percent on news of its CEO's departure, while Meta Platforms <META.O> slid 3.8 percent following a report on the postponement of its AI model release.