Stocks slumped to a second consecutive weekly loss on Friday, as intensifying tension in the Middle East prompted caution among investors.
All three major indexes fell more than 1%, and registered losses on the week.
The S&P 500 index (.SPX), opens new tab notched its biggest weekly percentage loss since January, while the Dow Jones Industrial Average's (.DJI), opens new tab weekly loss was its steepest since March 2023.
"When we look at what's happened in the macro space, inflation has taken a turn for the worse and that has put more pressure on companies to deliver this earnings season," said Mike Dickson, head of research at Horizon Investments in Charlotte, North Carolina, Reuters reported.
"Everyone's a bit jittery with intense focus on how good earnings need to be."
Results from a trio of big banks marked the unofficial launch of first-quarter earnings season.
JPMorgan Chase & Co (JPM.N), opens new tab, the biggest US bank by assets, posted a 6% profit increase but its net interest income forecast fell short of expectations. Its shares slid 6.5%.
Wells Fargo & Co's (WFC.N), opens new tab stock inched lower after profits fell 7% as net interest income dropped on weak borrowing demand.
Citigroup (C.N), opens new tab posted a loss after spending on employee severance and deposit insurance. Its stock dipped 1.7%.
Economic data this week, particularly Wednesday's hotter-than-expected Consumer Price Index report, has suggested that inflation could be stickier than previously thought, prompting investors to reset expectations about the timing and extent of the US Federal Reserve's rate cuts this year.
US Steel (X.N), opens new tab slid 2.1% after shareholders voted to approve a proposed merger with Nippon Steel Corporation (5401.T), opens new tab.
Declining issues outnumbered advancers on the NYSE by a 4.19-to-1 ratio; on Nasdaq, a 3.16-to-1 ratio favored decliners.
The S&P 500 posted 12 new 52-week highs and nine new lows; the Nasdaq Composite recorded 35 new highs and 211 new lows.
