U.S. markets posted a steep decline on Friday. When trading closed in New York, the Dow Jones Industrial Average was measured at 45,167 points, a drop of about 1.7 % from the previous day. Just minutes before the close, the S&P 500 had fallen 1.7 % to around 6,369 points, while the Nasdaq 100 slipped 1.9 % to roughly 23,133 points.
Geopolitical tensions continue to weigh heavily on investors. The ongoing conflict between the United States and Israel over Iran remains a central theme, diverting attention from expectations that the Federal Reserve would lower rates this year as former President Donald Trump had hoped. According to the CME Federal Reserve Monitor, the most likely scenario is that the Fed will keep the policy rate steady, although markets are already pricing in a modest rate increase in October.
Currency movements reflected the same uncertainty. At Friday night, the euro was trading at $1.1515, meaning that one U.S. dollar was worth only €0.8684.
Both gold and oil rallied sharply. Gold fetched $4,505 per troy ounce-up 2.3 %-equating to €125.79 per gram. Brent crude oil also surged, trading at $113.30 per barrel around 9 p.m. German time, a 4.9 % rise from the previous day’s close.
