Stock Market Today, March 13: Markets Fall as Oil Prices Soar and Iran War Continues

The S&P 500 (^GSPC 0.61%) fell 0.61% to 6,632.19, the Nasdaq Composite (^IXIC 0.93%) dropped 0.93% to 22,105.36, and the Dow Jones Industrial Average (^DJI 0.26%) slipped 0.26% to 46,558.47 as surging oil prices pressured equities.

Market movers

Energy and other defensive pockets outperformed while cyclicals lagged today. Ollie’s Bargain Outlet (OLLI +4.14%) gained following yesterday’s Q4 earnings. Micron Technology (MU +5.08%) increased on positive commentary ahead of next week’s earnings.

AI delays weighed on Meta Platforms (META 3.77%) as investors reacted to reports that the roll out of its Avocado would be pushed to May. Adobe (ADBE 7.53%) fell by 7.58% to close at $249.32 after announcing CEO Shantanu Narayen would step down during yesterday’s earnings.

What this means for investors

The S&P 500 posted its a third consecutive week of losses. Crude oil prices approached $100 a barrel due to continued disruptions in the Strait of Hormuz.  High oil costs put pressure on banks, materials, and consumer cyclicals. As the conflict in Iran approaches its second week, investors are preparing for further upsets.

Rate cuts are unlikely to happen when the Federal Reserve meets next week. Data from the Bureau of Labor Statistics today showed job openings rose in January. Consumer spending rose slightly at the start of the year. However, data collected before the conflict began only gives part of the picture.

Figures released today show consumer sentiment hit a three-month low. This is an indication of mounting concern about increased energy and gasoline prices. For investors, a focus on long-term goals helps offset the backdrop of fear and volatility.