Despite ongoing US-Israeli joint efforts to reopen the Strait of Hormuz, Friday’s stock market decline showed no signs of stopping. Selling intensified after Iraq declared Force Majeure across all foreign-operated oil fields.
Artha Journal
On Friday, the S&P 500 fell 1.51% to close at 6,506.48. The Dow Jones dropped 443.96 points to settle at 45,577.47, while the Nasdaq declined 2.01% to close at 21,647.61.
Key Market Indicators:
| Index | Closing Point | Change | Status |
|---|---|---|---|
| S&P 500 | 6,506.48 | −1.51% | ▼ Down |
| Dow Jones | 45,577.47 | −443.96 | ▼ Down |
| Nasdaq | 21,647.61 | −2.01% | ▼ Down |
| WTI Crude | $98.32 | +2.27% | ▲ Up |
| Brent Crude | $112.19 | +3.26% | ▲ Up |
| VIX | 27.46 | Elevated | ▲ Up |
Why Did Markets Fail to Recover?
Although Israeli Prime Minister Benjamin Netanyahu pledged support to reopen the Strait of Hormuz, the situation continued to deteriorate. According to CNBC, markets fell further after Iraq declared Force Majeure across all foreign-operated oil fields. Following drone strikes on two refineries in Kuwait, Brent Crude surpassed $112 per barrel.
200-Day Moving Average Broken
The S&P 500 breached its 200-day moving average on Friday — for the first time in nearly four months, ending a streak of 214 sessions above the long-term trendline. According to Advisor Perspectives, this marks the weakest weekly close of 2026.
Rate Cut Hopes Dashed
Fed Chair Jerome Powell held interest rates steady on Wednesday and gave no clear signal of easing inflation. Goldman Sachs has warned that markets are now pricing in a 35% chance of recession — up from just 10% two weeks ago. According to Motley Fool, shares of tech giants like Nvidia and Tesla fell sharply, while Nike touched a new 52-week low of $52. The Russell 2000 small-cap index dropped more than 2%, officially entering correction territory.
The world economy’s attention remains fixed on the Strait of Hormuz. Speaking to CNBC, oil experts warned that inflation and market turbulence will not subside until the waterway is fully operational again.
