US stocks close in red as S&P 500 dips on oil rally and geopolitics

• Utilities led S&P 500 sector gains with a 1.4% rise, while technology and communication services both fell around 1.1%, with major tech stocks like Nvidia, AMD, and Tesla ending in the red
• A federal judge rejected Justice Department subpoenas for Fed Chair Powell, calling them politically motivated attempts to pressure the central bank ahead of next week's rate decision meeting
• Mortgage rates climbed to 6.41%, the highest level since September, tracking rising 10-year Treasury yields amid escalating Iran war tensions

Summary

Market Performance:

US equities closed lower on Friday, March 13, 2026, with the S&P 500 declining 0.61% (now 5% below its recent peak), the Nasdaq Composite dropping 0.93%, and the Dow Jones falling 119 points (0.25%). Market sentiment was pressured by rising oil prices linked to ongoing Iran conflict and geopolitical tensions.

Sector Performance:

Utilities led gains among six positive S&P 500 sectors, rising 1.4%, followed by energy at 0.8%. For the week, utilities gained approximately 1% while energy climbed 2.5%. Technology and communication services were the weakest performers, both declining around 1.1%. Major tech stocks including Nvidia, AMD, and Tesla ended in negative territory.

Key Corporate News:

Ulta Beauty reported Q4 earnings of $8.01 per share with revenue of $3.9 billion, exceeding analyst estimates of $3.8 billion.

Federal Reserve Development:

A federal judge blocked the Justice Department's attempt to subpoena Fed Chair Jerome Powell, ruling the subpoenas issued by US Attorney Jeanine Pirro were improper and politically motivated. The decision provides certainty around Fed independence ahead of next week's policy meeting, where rates are expected to remain unchanged.

Housing Market:

Mortgage rates climbed to 6.41%, the highest level since September, tracking higher 10-year Treasury yields amid geopolitical tensions.

Market Outlook:

Investors remain cautious as geopolitical risks and volatile crude oil prices continue influencing sentiment, with trading volume increasing late session as bargain hunters emerged.