U.S. stocks closed lower on Friday as rising geopolitical tensions between Iran and Israel weighed heavily on investor sentiment. The S&P 500 lost 0.22% to 5,967.84, while the Nasdaq Composite dropped 0.51% to 19,447.41. The Dow Jones Industrial Average edged up 0.08%, closing at 42,206.82.
Markets were jittery heading into the weekend as the U.S. considers whether to intervene in the escalating conflict. President Donald Trump is expected to decide within two weeks, adding pressure on Iran to return to nuclear negotiations. Tehran has said it will not resume talks while under Israeli attack. Israel, meanwhile, claims to have hit dozens of military targets to deter Iran’s nuclear ambitions.
Investor caution was reflected in trading volumes, which surged to 20.91 billion shares, significantly above the 20-day average. The session also saw heightened volatility due to a quarterly "triple-witching" event—when stock options, index options, and futures contracts expire simultaneously.
Tech megacaps like Nvidia (NASDAQ:NVDA) led losses, contributing to the Nasdaq’s weekly dip. For the week, the S&P 500 fell 0.2%, the Nasdaq gained 0.2%, and the Dow remained mostly flat.
Investors also digested mixed signals from Federal Reserve officials. While Fed Chair Jerome Powell warned of potential inflation spikes from Trump’s tariffs, Governor Christopher Waller suggested a rate cut could come as early as the next meeting. Richmond Fed President Tom Barkin, however, remained cautious.
On the corporate front, Kroger (NYSE:KR) soared 9.8% after raising its annual sales forecast. In contrast, Accenture (NYSE:ACN) slid 6.9% on weak third-quarter bookings.
Market breadth was negative, with declining stocks outnumbering gainers on both the NYSE and Nasdaq, reflecting broad investor unease.


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