U.S. stocks edged lower on Friday, with all three major indexes extending losses as geopolitical uncertainty continued to weigh on investor sentiment. The Dow Jones Industrial Average fell roughly 1.1%, while the S&P 500 dropped about 1.0%. The tech-heavy Nasdaq Composite led the downside, sliding more than 1.4% as growth stocks came under renewed pressure.
Markets struggled to find footing after President Donald Trump extended a key deadline for potential strikes on Iranian energy infrastructure. While the delay initially offered hope for de-escalation, investors largely interpreted it as a temporary pause rather than a resolution, keeping volatility elevated and risk appetite subdued. Rising oil prices and shifting expectations for Federal Reserve policy added further pressure across equities.
Market Movers:
- Argan (AGX) +33% – Shares surged after the company posted strong Q4 results, with revenue rising 13% year over year and margins expanding significantly. A $2.9 billion backlog and $2.5 billion in new contracts highlighted strong forward demand and earnings visibility.
- ADMA Biologics (ADMA) +14% – The stock rebounded as management pushed back against a recent short report, arguing that critics misunderstood demand dynamics in the IVIG market. The response helped stabilize sentiment following a steep selloff earlier in the week.
- Unity Software (U) +8% – Shares jumped after the company raised its fiscal Q1 outlook, driven by strong performance in its Vector platform. Improved revenue and EBITDA guidance signaled accelerating momentum in its core business segments.
- Veritone (VERI) -23% – Shares plunged after weak preliminary Q4 results came in well below expectations, with a wide revenue range reflecting uncertainty. Continued losses and cautious full-year guidance added to investor concerns about execution.
- Zenas BioPharma (ZBIO) -19% – The stock dropped after the company announced a sizable dual capital raise, including convertible notes and an equity offering. The move raised dilution concerns despite bolstering its balance sheet.
- MARA Holdings (MARA) -8% – Crypto-linked stocks fell sharply as Bitcoin dropped roughly 5%, dragging down the broader digital asset ecosystem. The selloff reflected declining risk appetite amid geopolitical tensions and broader market weakness.
Oil Surge and Geopolitics Drive Volatility
Oil prices continued to climb Friday, with Brent crude holding above $100 per barrel and West Texas Intermediate pushing toward $97. Ongoing attacks in the Middle East and disruptions to the Strait of Hormuz have heightened fears of prolonged supply constraints, keeping energy markets on edge. The geopolitical backdrop remains the dominant force in markets, with investors closely watching whether diplomatic efforts can prevent further escalation. Analysts warn that sustained elevated oil prices could weigh on global growth and fuel inflation, complicating the Federal Reserve’s policy outlook.
Rates Spike as Fed Outlook Shifts
Treasury yields climbed sharply, with the 10-year yield reaching its highest level since July as markets priced in a more hawkish Federal Reserve. Expectations for rate cuts have faded, replaced by concerns that persistent inflation driven by energy costs could keep policy tighter for longer. This shift has pressured equities, particularly high-growth and tech stocks, which are more sensitive to rising rates. The divergence between bond and equity markets underscores growing uncertainty around the path of monetary policy in a volatile macro environment.
Tech and Consumer Stocks Feel the Pressure
Technology stocks remained under pressure, with software names leading declines as concerns around AI disruption and changing enterprise spending patterns resurfaced. Investors are increasingly cautious about long-term software contracts as rapid advancements in AI reshape the competitive landscape. Meanwhile, consumer-facing companies are beginning to reflect the impact of rising input costs. Carnival, for example, cut its full-year outlook, citing higher fuel expenses, highlighting how sustained energy price increases are starting to filter through to corporate earnings.
Looking Ahead
Markets are likely to remain volatile as investors track developments in the Middle East, with oil prices and geopolitical headlines continuing to drive sentiment. The trajectory of crude prices, shifts in Federal Reserve expectations, and incoming economic data will all play a critical role in shaping near-term direction, while earnings guidance and corporate commentary will offer clues on how businesses are navigating rising costs and uncertainty.