Middle East conflict escalates, crude oil surges more than 5%, tightening concerns resurface, US stocks open high and close low, Nasdaq falls more than 1%, and the entire week ends with a decline.

Israel launched a "partial attack" on the Gaza Strip, and US consumer inflation expectations unexpectedly rose to a five-month high. Among the three major US stock indexes, only the Dow Jones closed higher. The Nasdaq reversed its weekly gains on Friday, ending a two-week winning streak, while the Dow Jones ended a three-week losing streak. The earnings season got off to a good start for major banks, with JPMorgan Chase briefly rising 5% for its largest intraday gain in six months and closing up 1.6%. Wells Fargo closed up over 3%, while Citigroup initially rose over 4% before turning lower. The technology sector led the decline in the S&P 500, with chip stocks falling nearly 3% and Arm falling over 2%, experiencing its first decline since going public. Chinese concept stocks also fell for the second consecutive day, with JD.com dropping over 2%. European stock indexes halted their three-day winning streak, with Novo Nordisk hitting another all-time high and rising 11% for the week. Safe-haven sentiment increased, causing a rebound in US bonds, with the 10-year Treasury yield briefly falling more than 10 basis points, ending a five-week consecutive increase. The US dollar index rose for the second consecutive day to a one-week high, while gold staged a strong rebound, rising over 3% in a single day for the first time in ten months and posting a weekly gain of over 5%, the largest in nearly seven months. Crude oil recorded its largest daily gain in six months for the second time this week, with Brent crude rising over 7% for the week, the largest gain in eight months. European natural gas rose over 40% for the week.