US stocks today: Dow drops 400 points as Iran strike delays offers limited calm

Wall Street stocks opened lower Friday as optimism about the prospects for peace in the Iran war faded following US President Donald Trump's extension of a deadline on bombing energy infrastructure.

International benchmark Brent North Sea crude was up 2.5 percent to $110.67 per barrel on Friday morning, while the main US oil contract, West Texas Intermediate, rose 2.5 percent to $96.86.

On Thursday, Trump issued a 10-day extension on his deadline for Tehran to open the Strait of Hormuz or face the destruction of its energy assets.


The move had initially buoyed investors, paring oil's gains, but it failed to ignite much confidence as trading opened on Friday.

About 15 minutes into trading, all three major US indices were in the red.

The Dow Jones Industrial Average fell 418.03 points, or 0.91%, to 45,542.08. The S&P 500 declined 46.60 points, or 0.72%, to 6,430.50, while the Nasdaq Composite dropped 184.20 points, or 0.86%, to 21,223.88.

Steve Sosnick, chief strategist at Interactive Brokers, said markets were beginning to weary of the constantly changing rhetoric around the war, with not much changing on the ground.

"There's a real fatigue setting into markets," he said.

"Donald Trump has tried to improve the mood through his comments. But at some point, the market is starting to really look for action, not words."

Also weighing on sentiment was China's announcement on Friday of two investigations into US trade practices, retaliation for similar probes initiated by Washington.