Markets Mixed Ahead of US-Iran Weekend Peace Talks
Global stocks ended mixed while oil prices dipped as investors awaited weekend peace talks. Major US indexes logged their best weekly gains since November.
Global equity markets showed a mix of results on Friday as investors maintained a cautious outlook ahead of pivotal diplomatic discussions between the United States and Iran. While major indexes recorded their strongest weekly performance since November, the market remains on edge regarding whether the upcoming talks will lead to a permanent end to the recent conflict.
On Wall Street, the Dow Jones Industrial Average fell 0.6% to 47,916.57, while the S&P 500 slipped 0.1% to 6,816.89. The Nasdaq Composite managed a 0.4% gain, closing at 22,902.89. For the week, the S&P 500 rose 3.6%, and the Nasdaq climbed 4.7%. In the Asia-Pacific region, the broad market index added 0.9% on Friday, capping its best weekly advance in over three years.
Energy prices retreated as the market anticipated the weekend's diplomatic efforts. WT WTI CRUDE OIL settled down $1.30 at $96.57 per barrel, and Brent Crude Oil finished at $95.20 per barrel, down 72 cents. Despite the daily decline, oil remains elevated as shipping through the Strait of Hormuz remains a fraction of normal levels. In precious metals, Gold fell 0.3% to $4,747.88 an ounce, while Silver rose 1.4% to $76.10 an ounce.
Diplomatic delegations are scheduled to meet on Saturday to negotiate a lasting peace. Iran has reiterated demands for the unblocking of its assets and an end to military strikes by Israel in Lebanon. These geopolitical tensions are occurring alongside rising economic pressures, as consumer prices in the United States saw their largest increase in nearly four years during March. Additionally, China reported its first rise in factory-gate prices in three and a half years.
Market analysts noted that the combination of war-related uncertainty and the start of the first-quarter earnings season has kept investors on edge. Peter Tuz, president of Chase Investment Counsel, observed that Friday trading has become particularly volatile.
"Since the war began youve seen extra pressure on Fridays because of uncertainty about what might happen on the weekend," said Tuz.
Technology shares received a boost from encouraging results in Taiwan, where the world's largest contract chip manufacturer reported a 35% surge in first-quarter revenue. The growth was attributed to strong demand for artificial intelligence, helping the Philadelphia semiconductor index rise 2.3%.
In currency markets, the dollar index fell 0.2% to 98.68. The EUR/USD exchange rate rose 0.25% to $1.1728, while the dollar gained 0.2% against the yen, bringing the USD/JPY pair to 159.3. U.S. Treasury yields edged higher, with the 10-year note yield rising to 4.317% and the two-year note yield reaching 3.802%.
