Stocks slumped to a second consecutive weekly loss on Friday, as intensifying tension in the Middle East prompted caution among investors, adding to concerns about lingering inflation that had set off a retreat earlier in the week.
The S&P 500 fell 1.5 percent on Friday in its worst day of trading since January, and ended the week with a drop of 1.6 percent, its worst weekly decline of the year.
Other major indexes, including the Nasdaq Composite and Russell 2000, also fell on Friday.
The Vix Volatility Index, a measure of investor expectations for market swings over the next 30 days — known across trading floors as Wall Street’s “fear gauge” — was elevated.
The drop this week began after an inflation report on Wednesday showed unexpectedly stubborn increases in consumer prices, throwing into doubt the likelihood that the Federal Reserve will cut interest rates in the near future as the central bank seeks to keep the brakes on the economy and further slow the pace of rising prices.
Persons:
Stocks
Organizations:
Nasdaq, Russell, Federal Reserve