U.S. Stocks Waver as Iran War and Tariffs Spook Investors

U.S. equity markets wavered on Friday, with the S&P 500 and Dow Jones Industrial Average remaining on track for weekly losses. The Nasdaq fell 0.5%, dragged down by a 6% drop in Micron Technology and a 2.3% decline in Broadcom Inc. Investors are increasingly skeptical of the immediate profitability of heavy AI investments from companies such as Alphabet and Nvidia.

Market volatility is primarily driven by the Federal government of the United States escalating its war with Iran and implementing a new round of global tariffs on dozens of nations. While Brent crude oil prices fell 3.5% to $97.19, marking the first decline in a week, overall rising energy costs continue to stoke inflation concerns. These conditions have led investors to anticipate a potential interest rate hike from the Federal Reserve System.

Corporate earnings have provided mixed signals. American Express shares fell 6% despite reporting increased quarterly profits, suggesting a broader market trend of volatility regardless of individual company performance.