Michael Pistillo was active on the New York Stock Exchange floor as U.S. stocks ended their first winning week in the last three. Oil prices cooled down, relieving some pressure on Wall Street. The S&P 500 rose by 0.5%, breaking a three-day losing streak. Healthy gains placed it within 0.7% of last month’s record high. The Dow Jones Industrial Average grew by 478 points (0.9%), and the Nasdaq composite climbed 0.5%.
Brent oil prices dropped 2.8% to $97.44 per barrel. This price variability corresponds to the uncertainty surrounding the Middle East’s Strait of Hormuz during the war with Iran. A hopeful deal to reopen the strait could stabilize the market.
Despite the gains, Wall Street faced volatility following a report from the University of Michigan indicating a consumer inflation expectation of 4.6%, up from 4% last month. Consumer sentiment dropped to its lowest in four months, albeit better than economists predicted. Rising inflation expectations could trigger a cycle of increasing living costs, as consumers rush to buy goods before prices rise further.
The report affected Treasury yields, briefly lifting the 10-year yield to 5.22%, nearing its highest since 2007. High yields can slow economic growth by raising borrowing costs while pushing stock and investment prices down. The yield was initially 3.97% before the conflict in Iran.
Later on Friday, oil prices dropped, and the 10-year yield eased down to 5.15%, aiding Wall Street’s recovery. Stocks were boosted by Akamai Technologies, whose share rose 3.2% after securing a multiyear $11.6 billion agreement with Anthropic for AI services. Costco Wholesale’s shares increased by 2.9%, following better-than-expected quarterly profits.
Overall, the S&P 500 rose 39.28 points to 7,743.41. The Dow Jones Industrial Average climbed 478.64 points to 51,828.62. The Nasdaq composite gained 129.34 points to 27,068.72. Elsewhere, European market indexes showed mixed results after significant moves in Asia. Japan’s Nikkei 225 achieved a 1.3% increase, while Hong Kong’s Hang Seng dropped 1%.