Market Ends the Week Lower as Geopolitical Tensions Escalate

U.S. stocks wrapped up the week on a sour note as mounting concerns about a deepening conflict between Israel and Iran outweighed investors’ recent appetite for buying dips. The S&P 500 fell 1.1% on Friday, cutting its weekly gain to -0.4%, while the Russell 2000 and Dow Jones Industrial Average underperformed, losing 1.9% and 1.8% respectively for the day, and 1.5% each for the week.

Equities opened firmly in the red following overnight news that Israel had struck Iranian nuclear facilities, sparking a sharp jump in oil prices. Despite this, stocks managed to stage a steady rebound through the first half of the session, continuing the market’s notable resilience seen throughout the week. However, optimism faded by midday as fresh headlines signaled that tensions would likely intensify over the weekend.

President Trump added to the uncertainty, urging Iran to return to nuclear negotiations or face further Israeli action. Reports then emerged that Iranian officials had scrapped plans to attend Sunday’s scheduled nuclear talks. Markets were rattled further after Iran launched missiles toward Israel later in the day, extinguishing hopes for any near-term de-escalation.

All but one sector closed in the red, with financials (-2.1%) and technology (-1.5%) dragging the market lower. Payment processors bore the brunt of the selling in financials amid worries they could lose business if major retailers like Amazon and Walmart move ahead with launching their own stablecoins—a possibility highlighted by a Wall Street Journal report. Visa, PayPal, and Mastercard each fell between 4.6% and 5.3%.

Tech stocks struggled as traders took profits in chipmakers after a strong week. The PHLX Semiconductor Index slid 2.6%, though it still ended the week up 1.5%. Elsewhere in tech, most names declined, but solar companies like Enphase Energy and First Solar bucked the trend with solid gains. Meanwhile, Oracle continued its post-earnings rally, surging nearly 8% to notch another record high.

A few defense names displayed relative strength amid the geopolitical backdrop, with Northrop Grumman and Lockheed Martin both up around 4%, though the broader Aerospace & Defense ETF posted only a slight gain.

Energy stocks were the day’s clear outperformers, jumping 1.7% and extending their weekly climb to 5.7% as crude oil soared. WTI crude spiked $5.12, or 7.5%, to settle at $73.16 per barrel, ending the week with a robust 13.3% gain.

Our U.S. portfolio, FTinvest 11, jumped sharply in the opposite direction of the broader market at the opening, surging more than 1.5% shortly after the start of trading. However, the gains gradually faded, and the index declined for most of the remaining session. Despite this pullback, it managed to stay in positive territory and ultimately closed with a 0.59% gain at 782.51.