04:55 PM EDT, 03/13/2026 (MT Newswires) -- US equities fell Friday as investors digested fresh economic data, with Wall Street marking its third straight week of losses amid the ongoing Middle East conflict.

The Nasdaq Composite closed 0.9% lower at 22,105.4, while the S&P 500 dropped 0.6% to 6,632.2. The Dow Jones Industrial Average lost 0.3% to 46,558.5. Six of the 11 sectors ended in the red, led by technology, while utilities led the gainers.

This week, the Dow shed 2%, while the S&P 500 fell 1.6%. The Nasdaq dipped 1.3%.

The world is nearly two weeks into the US-Israel war with Iran.

"It's time to start planning for the collateral economic damage on US consumer spending, economic growth, and inflation," Scott Anderson, chief US economist at BMO, said in a report. "The (Federal Reserve) is now facing its second major supply shock in two years, further complicating its plans to bring down inflation and normalize interest rates."

In economic news, US consumer spending growth held steady in January as the Fed's preferred inflation metric accelerated year-over-year, delayed official data showed Friday.

"If elevated gas prices persist, they will weigh on consumer sentiment and spending," TD Economics said in a note. "Higher oil prices are also expected to drive broader inflation and could keep interest rates elevated."

The US economy expanded in the last quarter of 2025 at a slower pace than initially estimated amid weaker consumer spending and a larger downturn in exports, government data separately showed.

"A significant downward revision to end of the year growth reflects a weaker spending profile than previously reported," Stifel said in a note. "While concerning on the surface, at least a portion of the weakness can potentially be blamed on the record-long government shutdown disrupting activity and fueling uncertainty."

US consumer sentiment fell this month amid worries that higher energy prices could threaten personal finances, University of Michigan reported.

"Interviews completed prior to the military action in Iran showed an improvement in sentiment from last month, but lower readings seen during the nine days thereafter completely erased those initial gains," Surveys of Consumers Director Joanne Hsu said.

West Texas Intermediate crude was last up 3.3% at $98.88 a barrel, while Brent jumped 3% $103.50 a barrel, both well above pre-war levels. The oil price benchmarks were headed for their fourth weekly rise in a row.

The Strait of Hormuz -- the world's most important chokepoint for crude flows -- remained effectively closed as the Middle East conflict showed no signs of de-escalation.

US Defense Secretary Pete Hegseth dismissed concerns around the strait, saying there's no "need to worry about it," CNN reported. Meanwhile, there were reports of fresh strikes across the Middle East, including more Iranian attacks on Gulf states.

"The Middle East conflict will push up prices, but it will also likely harm US growth and job prospects," ING Bank said in a report published Friday. "We see this as a Fed rate-cut delayed rather than removed story, unlike 2022 when a demand shock, combined with a supply shock, fueled inflation and led to rate hikes."

Markets widely expect the US central bank to keep its benchmark lending rate unchanged next week, according to the CME FedWatch tool.

US Treasury yields were mixed, with the 10-year rate last up 1.3 basis points at 4.28% and the two-year rate little changed at 3.74%.

In company news, Ulta Beauty ( ULTA ) shares slumped 14%, the worst performer on the S&P 500. The beauty retailer late Thursday issued a full-year earnings outlook below market estimates and reported a lower-than-expected bottom line in the fiscal fourth quarter.

Adobe (ADBE) shares followed Ulta on the S&P 500, down 7.6%. Chief Executive Shantanu Narayen's departure seems to have taken the spotlight away from signs of stabilization in the company's core business, Morgan Stanley said.

Late Thursday, the software maker logged stronger-than-expected fiscal first-quarter results and said Narayen planned to step down.

Micron Technology ( MU ) is likely to see a positive impact from increasing memory prices that have exceeded the semiconductor maker's expectations, Wedbush Securities said Friday. The company's shares jumped 5.1%, among the top gainers on the S&P 500.

Gold was last down 2% at $5,022.40 per troy ounce, while silver tumbled 5.6% to $80.39 per ounce.