The S&P 500 Index was down 0.8% on Friday as traders assessed the impact of Israel's attack on Iran's capital amid escalating tensions over the nuclear program.
The Nasdaq 100 Index dropped 1.1% with tech stocks like Nvidia, Tesla, Meta Platforms, and Apple falling.
Energy companies rallied as crude prices surged, while airline and travel stocks declined after the attacks.
Investors sought safety in assets like gold and US Treasuries, causing volatility to rise in the market.
The jolt in turbulence disrupted a quiet period for US stocks, leading to concerns about persistent inflation pressures.
Some money managers believe the turbulence will be temporary as the Fed analyzes the situation.
Traders looked past positive consumer sentiment data to monitor other market developments.
US Steel Corp. dropped after reports of potential disruptions in Nippon Steel's takeover plans, while RH shares surged post-profit.