(Updates to 16:04 EDT)

By Stephen Culp

NEW YORK, April 19 (Reuters) - The Nasdaq and the S&P

500 closed sharply lower on Friday and Treasury yields dipped as

investors juggled lackluster earnings, uncertainties surrounding

central bank policy and geopolitical strife.

Gold and crude oil prices advanced as market participants

kept an uneasy eye on unfolding turmoil in the Middle East.

The Dow was the lone gainer among the three major U.S.

equity indexes, while the Nasdaq, weighed down by megacap tech

and tech-related momentum stocks, slid 2.05%.

The session marked six straight daily declines for the

S&P 500 and the Nasdaq, the longest losing streak since October

2022.

The S&P 500 and the Dow registered their steepest weekly

percentage losses since March 2023, while the Nasdaq saw its

largest weekly drop since November 2022.

Mounting tensions in the Middle East appeared to plateau

after Tehran downplayed Israel's retaliatory drone strike

against Iran, a move that seemed geared toward averting regional

escalation.

"The level of concern in the Middle East is higher than it

was at any time since Oct 7," said Peter Tuz, president of Chase

Investment Counsel in Charlottesville, Virginia. "It's close to

the forefront of a lot of peoples' minds."

While first-quarter reporting season is still in its early

stages, expectations have dimmed. Analysts now see aggregate S&P

500 earnings growth of 2.9% year-on-year, down from the 5.1%

estimate on April 1, according to LSEG.

"Next week is a big tech earnings week and that's probably

prompting some selling," Tuz added. "Those stocks have done so

well until relatively recently and I think some money is flowing

out of them just out of concern that earnings and guidance won't

meet expectations."

Chicago Federal Reserve President Austan Goolsbee said on

Friday that the Fed's restrictive policy is "appropriate" given

economic strength and the slower-than-expected process of

bringing inflation down closer to its 2% target.

The Dow Jones Industrial Average rose 211.02 points,

or 0.56%, to 37,986.4, the S&P 500 lost 43.89 points, or

0.88%, to 4,967.23 and the Nasdaq Composite dropped

319.49 points, or 2.05%, to 15,282.01.

European shares touched their lowest level in more than a

month but closed well off their intraday trough as anxieties

over strife in the Middle East eased and solid earnings provided

some support.

The pan-European STOXX 600 index lost 0.08% and

MSCI's gauge of stocks across the globe shed

0.84%.

Emerging market stocks lost 1.30%. MSCI's broadest index of

Asia-Pacific shares outside Japan closed 1.61%

lower, while Japan's Nikkei lost 2.66%.

Treasury yields inched lower as investors favored safe-haven

assets due to potential broadening of the Middle East conflict.

Benchmark 10-year notes last rose 6/32 in price

to yield 4.6228%, from 4.647% late on Thursday.

The 30-year bond last rose 14/32 in price to

yield 4.7168%, from 4.745% late on Thursday.

The dollar was last essentially flat as currency markets

calmed down after a flight to the Swiss Franc and the

yen in the wake of Israel's drone attack on Iran.

The dollar index fell 0.01%, with the euro up

0.08% to $1.0652.

The Japanese yen strengthened 0.02% versus the greenback at

154.63 per dollar. Sterling was last trading at $1.2371,

down 0.51% on the day.

Crude oil prices dipped earlier as supply concerns eased in

the wake of Iran's subdued response, reversed course and settled

modestly higher amid lingering uncertainties arising from

geopolitical instability.

U.S. crude rose 0.50% to settle at $83.14 per

barrel, while Brent settled at $87.29 per barrel, up

0.21% on the day.

Gold advanced, putting the safe-haven metal on track for its

fifth straight weekly gain.

Spot gold added 0.4% to $2,386.49 an ounce.