US Stocks fell sharply on Friday as investors grew increasingly concerned about the impact of the prolonged conflict with Iran, particularly the risk that higher energy prices could further fuel inflation and keep interest rates elevated. The S&P 500 lost 1.2%, the Nasdaq Composite dropped 1.5% and the Dow Jones fell 1.1%. Investors took profits in the technology sector following strong recent gains. Intel declined 5%, while Advanced Micro Devices and Micron Technology fell 3% and 4%, respectively. Nvidia lost 2%, and Cerebras Systems dropped 4% after surging 68% in the previous session following its Nasdaq debut. Microsoft outperformed, rising 4% after Bill Ackman revealed that Pershing Square had built a position in the company. Boeing shares also extended losses, falling 3% after dropping nearly 5% a day earlier, as investors reacted negatively to Trump’s announcement that China agreed to purchase 200 Boeing jets, only modestly above prior expectations.
India’s BSE Sensex closed 0.2% down at 75,238 on Friday, halting a two-day advance as late selling in metals and oil and gas stocks wiped out most of the day’s gains. Investors turned more cautious amid growing inflation concerns. Oil prices surged amid persistent Middle East tensions and uncertainty over the Strait of Hormuz reopening, while a nationwide fuel price hike added further pressure. India raised petrol and diesel prices for the first time in four years by 3 rupees per litre, or more than 3%, to recoup some of the losses incurred due to higher global crude oil prices. At the same time, foreign outflows continued. Among individual stocks, Tata Steel (-2%) led the losses, followed by Eternal (-1.9%), Reliance Industries (-1.9%) and UltraTech Cement (-1.8%). On the upside, Infosys and Tech Mahindra were the top performers, rising 2.1% and 2%, respectively. Power Grid, Adani Ports, Maruti, Bahrti Airtel saw gains above 1% each. For the week, the index posted a 2.7% decline.
