By Stephen Culp
NEW YORK (Reuters) -The Nasdaq and the stock market closed sharply lower on Friday and Treasury yields fell as investors juggled lackluster profits, uncertainties surrounding central bank policy and geopolitical fighting.
Gold and crude oil prices rose as market participants watched the unfolding turmoil in the Middle East with an uneasy eye.
The Dow Jones was the only gainer among the three major U.S. stock indexes, while the Nasdaq, pressured by mega-cap tech and tech-related momentum stocks, fell 2.05%.
The session marked six straight daily declines for the S&P 500 and the Nasdaq, the longest losing streak since October 2022.
The S&P 500 and the Dow Jones posted their biggest weekly percentage losses since March 2023, while the Nasdaq had its biggest weekly decline since November 2022.
Rising tensions in the Middle East appeared to level off after Tehran downplayed Israel’s retaliatory drone strike against Iran, a move that appeared aimed at averting regional escalation.
“Concerns in the Middle East are at an all-time high since Oct. 7,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “It’s close to the forefront of a lot of people’s minds.”
Although the first quarter reporting season is still in its infancy, expectations are tempered. Analysts now see headline earnings growth in the S&P 500 of 2.9% year over year, down from the 5.1% estimate on April 1, according to LSEG.
“Next week is a week of big tech earnings and that will likely lead to some selling,” Tuz added. “These stocks have done so well until recently and I think there’s some money flowing out of them just out of concern that earnings and expectations won’t meet expectations.”
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Chicago Federal Reserve President Austan Goolsbee said Friday that the Fed’s restrictive policy is “appropriate” given economic strength and the slower-than-expected process of bringing inflation closer to the 2% target.
The index rose 211.02 points, or 0.56%, to 37,986.4, the S&P 500 lost 43.89 points, or 0.88%, to 4,967.23 and fell 319.49 points, or 2, 05%, to 15,282.01.
European shares fell to their lowest level in more than a month but largely closed their intraday trough as concerns about unrest in the Middle East eased and solid earnings provided some support.
The pan-European index lost 0.08% and the MSCI index for shares around the world lost 0.84%.
Emerging market stocks lost 1.30%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.61% lower, but lost 2.66%.
Government bond yields fell slowly as investors preferred safe-haven assets due to the potential spread of conflict in the Middle East.
Benchmark 10-year bonds last rose 32/6 in price to yield 4.6228%, up from 4.647% late Thursday.
The 30-year bond last rose 14/32 in price to yield 4.7168%, up from 4.745% late Thursday.
The dollar was last near flat as currency markets calmed after a run into the Swiss franc and yen in the wake of Israel’s drone strike on Iran.
It fell 0.01%, while the euro rose 0.08% to $1.0652.
The Japanese yen strengthened 0.02% against the dollar, at 154.63 per dollar. Sterling last traded at $1.2371, down 0.51% on the day.
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Crude oil prices fell earlier as supply concerns eased in the wake of Iran’s muted response, reversing course and trading modestly higher amid lingering uncertainties due to geopolitical instability.
rose 0.50% to $83.14 per barrel from $87.29 per barrel, up 0.21% on the day.
Gold advanced, putting the safe-haven metal on track for its fifth straight weekly gain.
added 0.4% to $2,386.49 an ounce.
