Wall Street ends week lower on inflation and rate worries amid Middle East tensions; eyes on Monday

U.S. stocks ended lower, capping a week of declines as investors weighed whether escalating Middle East tensions could stoke inflation and keep interest-rate concerns in focus. The weakness left the S&P 500, Dow Jones Industrial Average and Nasdaq Composite with weekly losses and below key levels that traders monitor.

The retreat reflected renewed caution that geopolitical shocks could feed price pressures, complicating the outlook for borrowing costs. That backdrop kept risk appetite subdued and pressured major benchmarks through the week. With attention turning to Monday’s open, the central question is whether sentiment steadies or the latest slide extends.

Investors remain focused on how inflation fears and rate expectations intersect with developments in the Middle East. For now, the market’s immediate test is whether the S&P 500, Dow and Nasdaq can reclaim those levels or remain under pressure as the new week begins.