Wall Street indexes opened sharply lower on Friday after fears of rising inflation driven by the Middle East conflict pushed US Treasury yields higher, threatening to halt the AI-driven rally that has fueled markets in recent months.

The Dow Jones Industrial Average fell 133.2 points, or 0.27%, at the open to 49,930.26 points.

The SP 500 also declined by 56.1 points, or 0.75%, to 7,445.11 at the start of trading.

Meanwhile, the Nasdaq Composite dropped 346.3 points, or 1.30%, to 26,288.923 as the opening bell rang.