Wall Street Jolted by Middle East Conflict: Economic Ramifications Intensify

Wall Street faced a significant downturn amid the ongoing U.S.-Israeli conflict with Iran, escalating inflation fears and higher interest rates. Major companies like Nvidia and Microsoft witnessed declines, and concerns about the Federal Reserve's rate hikes have left a mark on the financial markets.

Amidst deepening turmoil in the Middle East as the U.S.-Israeli conflict with Iran nears the end of its fourth week, Wall Street experienced another tumultuous trading day. Heavyweights such as Nvidia and Microsoft posted significant losses, as investors grew increasingly concerned.

The protracted conflict has stoked fears of inflation, with the market now expecting a potential rise in U.S. interest rates, fueled by persistent high oil prices. Wall Street's mood turned bearish with the S&P 500, Nasdaq, and Dow Jones all recording losses for the fourth consecutive week.

The energy sector provided a rare bright spot, gaining 0.7%, marking its longest weekly rally since the late 1980s as geopolitical tensions also impacted Venezuela. With the market showing signs of distress, some companies like FedEx delivered upbeat forecasts, offering hope amid uncertainty.

(With inputs from agencies.)