U.S. stocks fell again this week, extending Wall Street’s losing streak to four straight weeks as rising oil prices, stubborn inflation concerns and fading hopes for near-term Federal Reserve rate cuts pushed investors into a more defensive posture.
By Friday’s close, the S&P 500 had fallen 1.9% for the week, while the Dow Jones Industrial Average dropped 2.1%. The Nasdaq also lost 2.1%, and the Russell 2000 slipped 1.7%, with smaller companies remaining under particular pressure.
Friday capped the week with another broad selloff. The S&P 500 fell 1.5%, the Dow dropped nearly 444 points and the Nasdaq slid 2%. The Russell 2000 moved deeper into correction territory, meaning it is now down more than 10% from its recent high.
The main driver was a surge in oil prices tied to the conflict involving Iran, raising concerns that higher energy costs could keep inflation elevated and force the Fed to keep interest rates higher for longer. As crude prices climbed, investors worried that both consumers and businesses could face added pressure in the weeks ahead.
That anxiety showed up across the market, especially in growth and technology stocks. Big-name tech companies such as Nvidia and Tesla were among the notable decliners, while other major tech names also moved lower as investors pulled back from riskier parts of the market.
The week did not start entirely negative. Stocks opened with a rally early in the week as investors briefly returned to AI-related names and welcomed a temporary easing in energy-market fears. But that optimism faded quickly as the focus shifted back to inflation, interest rates and geopolitical risk.
By the end of the week, the market’s tone had clearly deteriorated. The major indexes are now all lower for the year, reflecting how quickly sentiment has turned as investors reassess the outlook for growth, rates and corporate earnings.
The week also included some sharp company-specific moves. Super Micro Computer plunged after news tied to an alleged smuggling scandal involving advanced AI technology shipments to China, while FedEx posted a modest gain after delivering results that topped expectations.
The overall message from the week was clear: Wall Street remains highly sensitive to anything that could reignite inflation or prolong high interest rates. Until those concerns ease, markets are likely to remain volatile.
