US market extends selloff on Friday, Dow Jones down 100 points

• Brent crude rose to $111.22 per barrel and WTI climbed to $96.40 amid fears of disruptions to the Strait of Hormuz after Iran reportedly attacked a Kuwaiti oil refinery
• Market expectations for Fed rate cuts shifted dramatically, with traders now pricing cuts for 2027 instead of December 2026, as sustained high oil prices threaten to feed into core inflation
• Super Micro Computer plunged 24.6% after individuals linked to the company were charged in a $2.5 billion technology smuggling case involving China, while energy stocks extended record gains

Market Summary: US Stocks Extend Selloff Amid Iran Conflict and Oil Surge

Market Performance:

US equities opened lower on Friday, March 20, 2026, with the Dow Jones down 0.23% (104 points), S&P 500 declining 0.45%, and Nasdaq 100 falling 0.64%. Major indexes are tracking their fourth consecutive weekly loss, all trading below key 200-day moving averages. The Dow and Nasdaq sit approximately 8% below all-time highs, while the S&P 500 is 5% off its peak.

Geopolitical Impact:

The nearly four-week Iran conflict intensified as Iran reportedly attacked a Kuwaiti oil refinery, with potential US actions targeting Iran's Kharg Island under discussion. These developments threaten the Strait of Hormuz, a critical global oil chokepoint.

Oil Markets:

Brent crude surged to $111.22 per barrel, while West Texas Intermediate reached $96.40, creating significant volatility in energy markets.

Federal Reserve Implications:

Surging oil prices have complicated the Fed's policy outlook. Traders now expect rate cuts pushed to 2027, compared to December 2026 projections earlier this month. Fed Governor Christopher Waller cautioned that sustained high oil prices could fuel core inflation.

Sector Performance:

Energy stocks continued a record winning streak, with Halliburton and Cheniere Energy gaining. FedEx and UPS rose on positive corporate outlooks. Technology stocks struggled, with Super Micro Computer plummeting 24.6% following reports of individuals linked to the company being charged in a $2.5 billion China-related technology smuggling case.

Market Technicals:

Friday's "triple witching"—simultaneous expiration of stock options, index options, and futures—amplified volatility. The CBOE Volatility Index climbed, reflecting heightened investor uncertainty. The Russell 2000 briefly entered correction territory earlier in the week.