U.S. stocks fell again in Friday trading, with the Dow Jones Industrial Average shedding more than 500 points at one point, as crude oil climbed above $114 a barrel — a five-month high — on reports that the United States and Israel are drawing up plans to strike Iran after the Nov. 3 midterm elections.
The Dow was down about 1.1% in morning trade, the S&P 500 off about 0.5%, and the tech-heavy Nasdaq down about 0.3%, according to live market coverage. The selling followed Thursday’s rout, when the Nasdaq plunged 2.6% to 26,008 — its worst session since June — and the S&P 500 fell 1.2% to 7,663, its worst day since July; the Dow held its ground Thursday, closing up 11 points at 52,867.
Oil climbs to five-month high
Oil was the engine of Friday’s unease. Brent crude topped $114.50 a barrel, rising more than 1% and trading at highs not seen since May, while West Texas Intermediate climbed about 2% to around $101.70 a barrel. The Wall Street Journal reported the U.S. is preparing options for military action against Iran and moving more forces toward the region; Iran’s foreign minister, Abbas Araghchi, said Thursday that Iran is “just as prepared for diplomacy as we are for war.” President Donald Trump accused Iran on Thursday of trying to manipulate the oil market, CNBC reported.
In bonds, the 10-year Treasury yield hovered around 4.97%, slightly higher in Friday trade, after plunging about 19 basis points on Thursday to 4.95% — below the 5% threshold for the first time since Sept. 23 and the biggest one-day drop since March 2023 — as investors fled to safety. France’s 10-year government bond yield remained above 5.05%, near multidecade highs.
What it means for your money
For the week, the Dow was on track for a roughly 1.6% gain while the Nasdaq headed for a roughly 2.5% loss, with the S&P 500 on course to end the week in the red — a portrait of the defensive rotation that has defined the week, with investors dumping AI-linked names and sheltering in consumer staples, health care and utilities. Roughly 40% of individual stocks in the S&P 500 are trading 20% or more below their 52-week highs, according to FactSet data cited by Barron’s.
A five-month high in crude points to higher gasoline prices in the coming weeks, with pump prices typically trailing crude by two to four weeks; it also keeps inflation and borrowing-cost pressure alive just as families plan holiday travel. Bond yields slipping back under 5% is modest relief for mortgage and credit-card rates compared with this month’s multidecade highs, though rates remain elevated. Initial jobless claims held near three-month lows, a sign the labor market is still tight.
Sources: The Wall Street Journal; Barron’s; Investor’s Business Daily; CNBC
