Stocks generally rose on Friday, with oil prices falling for the first time in a week, despite Wall Street heading for a losing week overall. The S&P 500 increased by 0.5%, though it's still on track for its second consecutive weekly loss since March. The Dow Jones Industrial Average saw a 0.7% rise, or 351 points, while the Nasdaq was up 0.1%, with its gains capped by significant losses in several large-cap technology stocks such as Micron Technology, which fell 4%, and Broadcom, down 2.1%.
Investor sentiment was boosted by easing crude oil prices, which had seen a sharp rally earlier in the week due to escalating Middle East tensions. Brent crude, the international standard, dropped 5.1% to $95.55 a barrel, after briefly surpassing $100 on Thursday. Before the war in Iran began in late February, Brent was trading around $72 a barrel. Bond yields also eased, with the 10-year Treasury yield falling to 4.67% from 4.71%. European markets gained, while Asian markets closed lower.
A key driver for market sentiment was Intel's strong second-quarter results, which exceeded Wall Street expectations, leading to a 3% gain in premarket trading. This marked Intel's first quarterly revenue increase since Q3 2011, providing a positive boost. However, other tech giants experienced declines, with Tesla plunging nearly 15% after weaker-than-expected earnings, and Alphabet falling 7% after increasing its full-year capital expenditure guidance. American Express also fell 5.3% despite reporting a jump in profits but maintaining its profit forecast for the year and increasing spending to retain wealthy clients.
Concerns about inflation and interest rate policy continue to influence markets. Rising energy prices and new U.S. tariffs on imported goods could fuel inflation, prompting the Federal Reserve to consider a rate hike. Wall Street anticipates one rate hike by year-end, with a nearly 36% chance for one at the upcoming meeting. Higher energy costs, with gasoline at $4.10 per gallon nationally, threaten household budgets. Worries about the sustainability of corporate profits and whether AI-focused tech investments by companies like Alphabet and Nvidia will justify their high stock values also persist.
