What’s News in Markets: Gold Tarnishes, Not-So-Super Micro, Micron Peak?

Markets faced a turbulent week amid escalating concerns over oil supplies disrupted by the war in Iran, now three weeks old, and cautious signals from central banks on interest rates. U.S. stocks closed lower, with the Dow and Nasdaq each down 2.1% and the S&P 500 off 1.9%, while Brent crude futures rose 8.8%. Key losers included gold, Micron Technology despite strong earnings, and Super Micro Computer after a smuggling indictment.

Oil Shock and Fed Response Weigh on Stocks

The war in Iran dominated market talk, raising fears for the Strait of Hormuz, which handles a fifth of global oil supply. Early in the week, stocks rose on hopes of a coalition reopening the strait, but sentiment soured Wednesday after the Federal Reserve left rates unchanged as expected. Fed Chair Jerome Powell's press conference remarks highlighted inflation risks from the conflict, describing the bank's position as a "difficult situation." This prompted investors to cut bets on any 2026 rate cuts. News of a Middle East tax on energy infrastructure added pressure, driving the broad market decline.