Major U.S. stock indexes extended their losing streak for a third consecutive week, with investors increasingly concerned about the economic fallout from a potential prolonged conflict in the Middle East. The S&P 500 fell 0.6% on Friday, while the Dow Jones Industrial Average dropped 119 points, or 0.3%. The tech-heavy Nasdaq slipped 0.9%, dragged down by sector-specific selling.

All three major indexes posted weekly declines exceeding 1.2%, marking the longest stretch of losses since early 2025. Energy stocks showed particular volatility as traders assessed how extended regional tensions could impact oil supplies and prices. Defensive sectors like utilities and consumer staples saw modest gains as investors sought safer havens.

The market's retreat reflects growing unease about inflation risks and economic growth if energy prices spike due to Middle East instability. With no clear resolution in sight, investors are recalibrating portfolios and reducing exposure to economically sensitive sectors.