Stocks End Lower as Oil Rebound Caps Volatile Week

U.S. equities closed out a difficult week with another round of losses as rising oil prices once again pressured the broader market. The S&P 500 fell 0.7%, the Nasdaq Composite dropped 1.0%, and the Dow Jones Industrial Average slipped 0.3%, extending the week’s downside momentum.

The session began on a more optimistic note. Stocks opened with solid, broad-based gains after crude oil prices declined in early trading, briefly dipping toward the $92 per barrel level ahead of the opening bell. However, that relief proved short-lived.

Oil prices gradually moved higher through the late morning and into the afternoon, ultimately settling up 3.0% at $98.56 per barrel. The rebound followed reports that the Pentagon is deploying additional Marines and warships to the Middle East, potentially to escort oil tankers through the Strait of Hormuz. Despite those efforts, investors remain skeptical that the conflict in Iran will be resolved quickly, keeping energy markets on edge.

As crude prices climbed, equities steadily surrendered their early gains. Although all eleven S&P 500 sectors traded higher at the start of the session, only five managed to hold onto gains by the closing bell.

Technology stocks experienced the sharpest reversal. The information technology sector finished down 1.3% after beginning the day with gains exceeding 1%. Software names were particularly weak, with Oracle giving back part of its recent post-earnings rally and dragging down the broader software space.

Semiconductor stocks delivered mixed results. Memory-chip producers SanDisk and Micron Technology posted strong gains, but those advances were offset by declines in other major chipmakers such as Broadcom and Advanced Micro Devices, leaving the broader semiconductor group barely higher by the end of the session.

Elsewhere in technology, Adobe dropped sharply despite beating earnings expectations after news broke that the company’s chief executive plans to step down.

Communication services stocks also struggled. Meta Platforms was a notable laggard following reports that the company’s next-generation AI model launch may be delayed, weighing on the sector.

The materials sector was another area of weakness, declining more than 1%. Fertilizer producers such as The Mosaic Company and CF Industries gave back part of the previous session’s gains amid ongoing reports of supply disruptions tied to tensions in the Middle East.

Defensive sectors held up better in comparison. Utilities and consumer staples both posted gains as investors rotated toward more stable areas of the market during the late-session pullback.

Energy stocks also finished slightly higher as crude prices rose, while real estate and financials eked out modest gains.

Investors also digested a heavy slate of economic data during the session. Fourth-quarter GDP growth was revised down sharply to 0.7%, while the January Personal Income and Outlays report showed the PCE Price Index— the Federal Reserve’s preferred inflation measure—rising 0.3% for the month and 2.8% year over year. Durable goods orders pointed to solid business investment, and job openings rose to their highest level since late 2020.

Although the inflation data showed a modest cooling on a year-over-year basis, markets remain focused on the likely impact of higher oil prices in the months ahead. The surge in energy costs could push inflation readings higher and further delay expectations for interest-rate cuts.

Ultimately, the market’s reversal from strong early gains highlights how sensitive equities have become to movements in oil prices. As the conflict involving Iran continues and energy markets remain volatile, rising fuel costs are increasingly shaping investor expectations for both corporate margins and the path of monetary policy.

Our FTinvest 11 model portfolio declined 0.62% to close at 959.45, extending the recent pullback and marking another step lower from the portfolio’s all-time high of 1,039.51. The index has now experienced a sustained correction over the past several sessions as market volatility persists.

Despite the recent downward trend, FTinvest 11 continues to maintain a solid year-to-date gain following its strong rally earlier in 2026. The portfolio’s disciplined, value-oriented strategy remains central as it navigates this period of market weakness while preserving its long-term performance trajectory.