Stocks wavered on Wall Street Friday and oil prices held steady amid a shaky ceasefire agreement between the U.S. and Iran.
The S&P 500 rose 0.2 per cent in morning trading and is heading for a second consecutive winning week. The Dow Jones Industrial Average fell 106 points, or 0.3 per cent, as of 10:43 a.m. Eastern. The Nasdaq composite rose 0.6 per cent.
Major indexes have been gaining ground over the last two weeks amid optimism that the war with Iran could be heading toward a resolution. The market is still prone to big swings on developments around the war.
Trading on Wall Street remained choppy. There were more stocks losing ground than making gains within the benchmark S&P 500. The index has erased most of its losses from March and is just two per cent short of its all-time high set in January.
Technology companies with hefty values helped counter losses elsewhere in the market.
Nvidia rose 2.4 per cent and Broadcom rose 4.9 per cent.
Markets in Asia and Europe gained ground.
Oil prices have been behind many of the stock market’s sharp movements. Oil prices have surged as shipping through the vital Strait of Hormuz essentially stalled since the war began.
Brent crude oil, the international standard, has gone from roughly $70 per barrel before the war in late February to more than $119 at times. Brent fell 0.5 per cent to $95.47 Friday.
U.S. crude oil prices fell 0.3 per cent to $97.59 per barrel.
Negotiators from Iran and the U.S. are preparing for high-level talks on Saturday. The situation remains uncertain. Iran’s semiofficial Tasnim news agency claimed that talks wouldn’t happen unless Israel stopped its attacks in Lebanon.
The conflict is behind surging inflation in the U.S. in March. The government reported the biggest spike in inflation in four years as prices at the gas pump jumped. But, the inflation increase was just short of what economists expected.
Bond yields held mostly steady following the latest inflation update. The yield on the 10-year Treasury rose to 4.31 per cent from 4.29 per cent late Thursday.
Inflation has been a lingering concern for economists and the Federal Reserve. Prices on a range of consumer goods and services are already stubbornly high, in part from the impact of extensive global tariffs. Higher gas prices are immediately felt by drivers at the pump, but they could eventually raise prices on everything from food to airfare as companies pass along higher costs for shipping and fuel.
Consumer sentiment slumped 10.7 per cent in April, according to a closely watched monthly survey from the University of Michigan. It also shows that consumers are growing more worried about inflation, with year-ahead expectations surging to 4.8 per cent in April from 3.8 per cent in March.
Inflation remains a major concern for the Federal Reserve, which has signaled more caution amid worries about inflation reheating. The rate of inflation remains above the central bank’s two per cent target. The threat of rising inflation will likely mean the central bank continues to hold interest rates steady. Several Fed officials have also said a rate hike may be needed if inflation doesn’t cool.
Lower interest rates help boost stocks and other investments by lowering borrowing costs. Interest rate cuts also risk worsening inflation.
Wall Street is forecasting that the Fed will likely hold its interest rate steady through 2026.
Damian J. Troise, The Associated Press
