U.S. orders non-emergency personnel and families out of Saudi Arabia; Dow closes -653 as Brent hits 5-month high
What happened
U.S. stocks closed sharply lower Friday as the Iran conflict escalated: the Dow finished down 653 points (-1.2%) after falling as much as 750 intraday, the S&P 500 fell 0.5% for a second straight day, and the Nasdaq shed 0.2% following Thursday's 2.6% rout — its worst since June. Brent crude jumped 2.7% to $116.24 a barrel and WTI rose to ~$103.60, both five-month highs, with Brent on track for a weekly gain above 10%. The U.S. ordered non-emergency personnel and their families to leave Saudi Arabia amid reports the U.S. and Israel are drawing up plans for fresh strikes on Iran after the November 3 midterm elections. Iran's IRGC claimed four vessels were struck and caught fire in the Gulf and three others struck mines in the Strait of Hormuz; Trump accused Iran on Truth Social of 'making up fake hits, mines, and everything else' to drive oil prices higher before the midterms. National average gasoline hit $4.29/gallon (AAA).
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Start your free 14-day trialWho’s affected
- Broad market (Dow -653 / -1.2% to close, S&P -0.5%, Nasdaq -0.2% — second straight down day); energy names (Chevron +2.9%, bucking the selloff) benefit from crude strength; rate-sensitive equities hurt as 25bp Fed hike odds at the Oct 28 meeting doubled to ~10.5%; American Express paced decliners at -3.7% on its Q3 revenue miss + 5% workforce cut; Microsoft +0.7% ahead of Oct 28 earnings was a rare bright spot.