The Dow Jones Industrial Average tumbled on Friday and fell into correction territory, while Brent traded above $110 after incidents in the Strait of Hormuz exacerbated investors’ energy supply concerns and President Donald Trump’s latest comments failed to encourage traders to scoop up shares.
The 30-stock index faltered 469.25 points, or 1%, to 45,490.86.
The S&P 500 index subtracted 59.43 points to 6,417.73.
The NASDAQ lost 284.37 points, or 1.3%, to 21,123.72.
Friday’s slip comes a day after the NASDAQ on Thursday fell into a correction, down more than 10% from a record set in October. The Dow also moved into correction territory Friday after moving into it in morning trading, also currently down 10% from its recent high. The S&P 500 is more than 8% below its record.
Uncertainty remains for investors, after Iran’s foreign minister reportedly told state media this week that Tehran has no intention of holding talks with the U.S., even if its leaders are reviewing an American proposal to end the war.
On top of that, The Wall Street Journal reported, citing people familiar with the matter, that the Pentagon was considering sending another 10,000 troops to the Middle East.
The Strait of Hormuz is closed, Iran’s Islamic Revolutionary Guard Corps has said to the country’s state media, adding that movement through the key waterway will face a harsh response.
Two Chinese ships were turned away from crossing the Strait early Friday, and a Thai-flagged cargo ship that had been hit in the waterway has run aground, Iran state media said.
Prices for the 10-year Treasury gained slightly, lowering yields back to Thursday’s 4.42%. Treasury prices and yields move in opposite directions.
Oil prices hiked $3.63 to $98.11 U.S. a barrel.
Gold prices revived $147.00 to $4,523.300 U.S. an ounce.
