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U.S. stocks declined during the week with the Dow Jones Industrial Average shedding 1.32% and dropping back into negative territory for the year. The S&P 500 Index and Nasdaq Composite fell to a lesser extent and remained positive year-to-date. Major indexes were broadly higher through Thursday, buoyed by some better-than-expected economic data releases as well as reports that trade talks between the U.S. and China had led to a preliminary agreement to ease recent trade tensions. However, sentiment quickly turned negative on Friday morning on news that Israel had launched a series of airstrikes targeting Iran’s nuclear facilities and military leaders, with a pledge of more attacks to come, to which Iran reportedly responded with a retaliatory attack later on Friday. The significant escalation in tensions sent oil prices surging +8%, the biggest gain since March 2022 (Russian invasion). Energy stocks surged on Friday while the broader indexes fell sharply and gave back gains from earlier in the week. The VIX closed above 20 while Gold closed the week at record high. Safe-haven flows into US Treasuries were offset by the inflationary fears from Iran retaliation in the Strait of Hormuz and its impact on oil prices. Yields ended lower on the week still, and were bid as the Iranian retaliation hit this afternoon. The dollar ended the week lower, despite some strength on Friday. The pan-European STOXX Europe 600 Index ended 1.6% lower amid geopolitical tensions. Bitcoin retreated to $105k on Friday.