After a strong multi-day advance, the S&P 500 (-0.17%) and the Nasdaq Composite (-0.83%) finished in negative territory following another round of earnings reports and corporate news.
The Dow-30 (+0.49%) closed at a record high amid signs of progress in talks on a peace agreement with Iran. Nvidia, a Dow component, rose after Elon Musk said SpaceX will use only Nvidia processors going forward when building its AI infrastructure. At the same time, Advanced Micro Devices and Alphabet came under pressure. AMD’s adjusted earnings only slightly beat forecasts, while Alphabet announced a reorganization of its AI divisions.
Even so, overall market sentiment remained positive, as progress in easing tensions in the Middle East helped offset some profit-taking after this week’s strong rally. The proposed agreement between Iran and Oman would give Tehran control over vessels entering the Persian Gulf via the Strait of Hormuz, Reuters reported, citing a senior Iranian source. This is one of Iran’s biggest concessions to date.
U.S. Treasuries continued to climb, pushing longer-dated yields down to weekly lows. The 2-year yield fell by 2 bps to 4.18%, and the 10-year yield slipped by 1 bp to 4.62%. The U.S. dollar hit a 7-week low against major global currencies, while the euro rose to $1.155 (+0.16%).
Oil prices edged lower in a volatile session, remaining sharply down for the week. Hopes for a near-term deal to resume shipping through the Strait of Hormuz were offset by attacks on Saudi oil tankers by Iran-backed Houthis. WTI crude futures closed at $75.22 a barrel (-0.7%).