(Updates with market close)
* Main indexes on track for fourth straight weekly loss
* US deploying more troops to Middle East
By Noel Randewich and Johann M Cherian
March 20 (Reuters) - Wall Street ended sharply lower on
Friday, with losses in heavyweights Nvidia ( NVDA ) and Microsoft ( MSFT ), as the
U.S.-Israeli war against Iran entered its fourth week, deepening
worries about inflation and the potential for higher interest
rates.
The conflict in the Middle East showed no signs of easing. The
U.S. military was deploying a large amphibious assault ship with
thousands of additional Marines and sailors to the Middle East,
while Iran's new supreme leader hailed Iran's "unity" and
"resistance."
"The market is finally settling into the idea that this may
go on longer than initially expected, and I think that's why
markets are selling off. This conflict may go on not for just a
few weeks, but maybe beyond several months," said Jake
Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.
MAGNIFICENT SEVEN COMPANIES FALL
Wall Street's most valuable companies declined, with Nvidia ( NVDA )
, Alphabet, Tesla, Meta Platforms ( META )
and Microsoft ( MSFT ) all losing ground.
U.S. Treasuries fell for a third session, in step with a broader
selloff in UK and European government bonds, as the Middle East
conflict kept oil prices elevated and reinforced inflation
worries.
U.S. rate futures show the Fed is more likely to raise
interest rates than cut them by the end of 2026, according to
CME's FedWatch tool.
"We just have a classic environment that is pushing rates
up and it's driven by higher inflation expectations, which
relate back to the oil price. And the fact that we're heading
into the fourth week of the war suggests that that stress is not
going away anytime soon," said Padhraic Garvey, head of global
rates and debt strategy at ING in New York.
According to preliminary data, the S&P 500 lost 99.01
points, or 1.49%, to end at 6,508.32 points, while the Nasdaq
Composite lost 436.98 points, or 1.98%, to 21,653.71.
The Dow Jones Industrial Average fell 422.32 points, or
0.92%, to 45,599.11.
Friday marks the once-in-a-quarter simultaneous expiry of
derivatives contracts tied to stocks, index options and futures,
also known as "triple witching," which can boost trading volume
and aggravate volatility.
All three main indexes were heading for their fourth
straight week of losses and were below their 200-day moving
averages, underscoring the recent deterioration of sentiment on
Wall Street.
Super Micro Computer ( SMCI ) tumbled after three people
associated with the artificial intelligence server maker were
charged with smuggling at least $2.5 billion of AI technology to
China. Rival Dell advanced.