US stocks fall from record highs on me tension.

all Street fell from record highs on Friday after a US air strike in Iraq ratcheted up tensions in the Middle East and a bigger-than-expected contraction in the US manufacturing sector raised concerns of slowing economic growth.

Demand for safe-haven assets soared as Iran vowed revenge for the killing of Qassem Soleimani, head of its elite Quds Force, in an air strike authorized by US President Donald Trump.

In a further blow to U.S. market sentiment, data from the Institute for Supply Management showed that US factory activity contracted in December by the most in more than a decade.

SandP 500 bank stocks dropped 1.4% as the news sent benchmark U.S. bond yields to their lowest since Dec. 12.

Shares of airlines also tumbled as oil prices jumped about 3%. American Airlines Group Inc shares dropped 4.4%, while shares of United...