Stocks moved lower this week as surging oil prices and rising bond yields weighed on investor sentiment. The escalation of the U.S.-Iran conflict fueled fears of stagflation—a challenging environment for both equities and fixed-income securities.
Adding to the uncertainty was a labor market report released late in the week that pointed to job losses, possibly linked to unusually severe weather conditions. Smaller-cap stocks and consumer discretionary companies—both highly sensitive to interest rates and economic conditions—were among the hardest hit sectors.
