Stock markets fall amid geopolitical conflict in the Middle East

U.S. benchmark stock indices closed lower on Friday, as the escalating conflict between Israel and Iran rocked the Middle East and boosted oil prices.

The Nasdaq fell 1.3% to 19,406.83 points, the S&P 500 fell 1.1% to 5,976.97 points, and the Dow Jones Industrial Average fell 1.8% to 42,197.79 points. Among the sectors, financials and technology led the losses, with energy being the only one that rose.

Israel attacked Iran early Friday morning local time, targeting military infrastructure and nuclear facilities, media reported.

An escalation in the conflict between Israel and Iran could push oil prices above $80 per barrel, according to ING Bank. "If Iran's retaliation is limited and focuses solely on Israeli military facilities, as seen in previous episodes, price increases could remain contained and prove temporary," said Rystad Energy, a research firm.

"But if Iran escalates its actions by disrupting oil flows through the Strait of Hormuz, attacking regional energy infrastructure, or targeting U.S. military assets, prices could spike much more sharply."

In corporate news, Visa shares fell 4.9% and Mastercard 4.6% as Walmart, Amazon.com, Expedia, and several major airlines considered plans to launch their own stablecoins.

Oracle shares rose 7.7%, the largest gain among the largest U.S. companies, the S&P 500. Mizuho and Argus raised their price targets, while William O'Neil initiated coverage with a buy rating.

Biggest weekly drop

Mexican stock markets maintained their negative tone throughout Friday's session, in line with a global market that grew uncertain due to the latest military attacks in the Middle East. The S&P/BMV IPC index of the Mexican Stock Exchange (BMV) fell 0.68% to 57,438.57 points, while the FTSE-BIVA index of the Institutional Stock Exchange (Biva) lost 0.61% to 1,159.61 points.

The indicators fell for the third time in five days, recording a weekly drop of over 1%, making it the most negative of the last six. Furthermore, Mexican stock baskets closed with their lowest score in the last month.

Investors took into account that the Mexican government signed an agreement to reduce the price of a kilogram of tortillas by 5% for the general public in the country.

The stocks that fell the most were the auto insurer Quálitas, the cement and concrete producer Cemex, and the lender Gentera.