LIVE MARKETS-US stocks slide, energy sector hits record as war premium grips markets

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US STOCKS SLIDE, ENERGY SECTOR HITS RECORD AS WAR PREMIUM GRIPS MARKETS

The main U.S. indexes tumbled, while the S&P 500 Energy sector .SPNY scored a record closing high on Friday as the U.S.-Israeli war on Iran stoked fears of a prolonged conflict, triggering widespread risk aversion and pushing traders to price in possible interest-rate hikes this year.

The U.S. military is deploying thousands of Marines to the Middle East, officials told Reuters on Friday, as President Donald Trump accused NATO allies of cowardice over their reluctance to send forces to help open the Strait of Hormuz.

Losses were pared somewhat into the close. However, the three main indexes still ended sharply lower with the Nasdaq Composite .IXIC, down 2.01%, the worst performer.

With this the S&P 500 .SPX, Nasdaq and the Dow .DJI all scored a fourth straight week of losses. That's the longest stretch that the three main indexes have declined together on a weekly basis since a seven-week run of losses that ended in May 2022, during what proved to be a bear market.

Additionally, the small-cap Russell 2000 Index .RUT, with a 2.26% slide, entered correction territory given that it ended down more than 10% from its January 22 record close (-10.31%). The Nasdaq Composite finished down 9.65% from its October 29, 2025, record close, while the Dow ended down 9.19% from its February 10 record finish. The benchmark S&P 500 ended down 6.77% from its January 27 record close.

Treasury yields spiked as traders priced in the possibility of Federal Reserve rate hikes this year. Surging oil prices threaten to push inflation further above the Fed's 2% target, though the growth drag from rising energy costs could still force cuts.

The benchmark 10-year Treasury yield US10YT=RR reached 4.393%, its highest since August.

Here is a snapshot of where markets stood shortly after 4 p.m. EDT.

(Karen Brettell, Terence Gabriel)

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