Wall Street Anxiety: Fed's Rate Hopes Dashed Amid Iran Conflict

US stocks plunged on Friday as Wall Street's optimism for a Federal Reserve interest rate cut dwindled, spurred by the ongoing conflict with Iran. The S&P 500 fell 0.9%, marking its longest losing streak in a year, while the Dow Jones Industrial Average dropped 285 points, or 0.6%.

Elevated Treasury yields, driven by fears of prolonged higher oil and natural gas prices, have exacerbated inflation concerns, further dampening hopes for rate cuts. Traders have reconsidered earlier predictions, with some positing rate hikes as far ahead as 2026.

The market fluctuations reflect anxiety over the detrimental impact of the war, with significant oil transit routes potentially compromised. In other news, Super Micro Computer faced sharp declines due to smuggling accusations, while FedEx bucked the trend with positive financial results.