Markets ended another turbulent week lower as rising Middle East tensions, a surge in oil prices, and mixed earnings results weighed on investor sentiment. Key benchmarks fell, with defense and energy stocks under pressure.
- S&P 500 dropped 1.4%, Nasdaq Composite fell 1.8% during the week
- CL=F crude oil surged 6.7% to $89.60 per barrel amid Middle East tensions
- VIX rose to 24.3, its highest level in six weeks
- Apple (AAPL) declined 4.2% after missing revenue and lowering Q2 guidance
- Defense stocks: Lockheed Martin (LMT) down 2.1%, Raytheon (RTX) down 1.7%
- Energy sector impacted as XOM and CVX posted 2.9% and 3.4% losses
Wall Street closed the week in negative territory, dragged down by a confluence of geopolitical risk, volatile energy markets, and uneven corporate performance. The S&P 500 dropped 1.4%, while the Nasdaq Composite slid 1.8%, reflecting broad-based investor caution. The VIX, often referred to as the 'fear index,' spiked to 24.3, its highest level in six weeks, signaling heightened market anxiety. The immediate catalysts included a sharp 6.7% increase in crude oil prices, with the front-month West Texas Intermediate (CL=F) contract reaching $89.60 per barrel, driven by escalating conflict in the Middle East and supply fears. This surge elevated energy sector concerns, with ExxonMobil (XOM) and Chevron (CVX) posting declines of 2.9% and 3.4%, respectively. Simultaneously, defense stocks faced pressure despite strong demand signals, as Lockheed Martin (LMT) and Raytheon Technologies (RTX) both fell 2.1% and 1.7% amid skepticism about near-term growth sustainability. Earnings season delivered mixed results. Apple (AAPL) reported a 4.2% decline in after-hours trading after missing revenue expectations by 2.3% despite solid iPhone sales, with guidance for Q2 falling short of analysts’ forecasts. The stock’s drop contributed to a 2.5% decline in the broader tech sector. Meanwhile, some industrials and financials posted better-than-expected results, but gains were overshadowed by sector-wide losses in energy and defense. Investor focus now shifts to the Federal Reserve’s upcoming policy meeting, with markets pricing in a 62% chance of a rate hold in April. The combination of inflation persistence, geopolitical risk, and corporate caution is likely to keep volatility elevated in the short term, particularly for energy and defense equities exposed to global instability.