U.S. Markets Close Lower, Third Straight Weekly Decline
U.S. equities fell Friday with the DIA ETF down 0.2% at $466.41, capping the third consecutive weekly loss as investors braced for a prolonged Iran conflict and its impact on energy prices and economic stability.
Primary Catalyst: Judge Blocks Powell Investigation, Oil Holds Above $100
A federal judge blocked DOJ subpoenas of Fed Chair Powell, ruling the criminal investigation was a "pretext" to punish him for not lowering rates as Trump demanded. U.S. Attorney Jeanine Pirro vowed to appeal, calling the ruling an affront to the rule of law. Oil prices held above $100 per barrel as the Strait of Hormuz blockade persisted, with Iran's new Supreme Leader vowing to continue disrupting global energy flows.
Macro Context: Rate Cut Hopes Evaporate, GDP Revised Sharply Lower
Traders have removed even a September rate cut from pricing, now expecting only one cut in December as oil-driven inflation fears surge. Q4 2025 GDP growth was revised sharply down from 1.4% to 0.7%, signaling economic weakness even before the oil shock. The 10-year Treasury yield headed for its steepest two-week climb in almost a year as investors shunned U.S. debt as a haven play during the Iran conflict.
Sector Performance (NASDAQ)
NASDAQ Sector Performance - March 13, 2026
View data table
| Label | Value |
|---|---|
| Energy | 1.1 |
| Consumer Defensive | 0.3 |
| Utilities | -0.1 |
| Real Estate | -0.8 |
| Industrials | -0.9 |
| Consumer Cyclical | -1 |
| Basic Materials | -1.1 |
| Healthcare | -1.2 |
| Communication Services | -1.4 |
| Technology | -1.5 |
| Financial Services | -2 |
Investor Takeaway
The March 17 Fed meeting is now critical—will Powell hold rates steady despite Trump's pressure and surging oil prices? The combination of evaporating rate cut hopes, $100+ oil, and private credit stress creates a toxic backdrop. Stocks fell for the third straight week, with all major indexes down more than 1.2%. The S&P 500 is now down ~1% year-to-date. Investors are watching whether the Strait of Hormuz blockade persists and whether private credit redemptions spread beyond Cliffwater and Morgan Stanley. Q1 earnings season (starts April) will reveal how much companies cut guidance due to the oil shock.