2026.03.2713:37:35UTC+00US Stock Indices Drop to Near 7-Month Lows

US equity markets fell to their lowest levels in nearly seven months on Friday, as escalating conflict in the Middle East and renewed trade frictions intensified concerns about stagflation. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 each declined by roughly 0.7%.

President Trump opted to extend a pause on strikes targeting Iranian energy infrastructure, but fresh explosions elsewhere in the region disrupted tanker traffic through the Strait of Hormuz. The resulting spike in energy prices had already led investors to scale back expectations for a Federal Reserve rate cut this year, and sentiment worsened further after China opened a trade investigation into the US in response to Washington’s tariffs.

Technology heavyweights were sharply lower as the broader pullback in risk appetite undermined confidence in speculative AI-related trades. Tesla, Microsoft, and Oracle each lost close to 2%, while Alphabet slid 3.5%. Memory-chip makers also retreated after new research from Alphabet highlighted AI models that require less computing power, raising questions about future demand for high-end chips.

Meta has fallen nearly 10% since Wednesday, pressured by announced layoffs and a court ruling that deemed its social media platforms addictive.