Nasdaq Rises as Tech Stocks Gain Traction, Oil Prices Decline Amid Signs of Middle East Peace Developments

Markets Choppy Amid Peace Talk and Corporate Earnings Cross-Currents

The US stock market was in a state of flux on Friday, with investors weighing solid corporate earnings against downbeat forward guidance due to the war-related energy price shock. The S&P 500 and the Nasdaq advanced, while the Dow was in negative territory.

The S&P 500 rose 50.33 points, or 0.71%, to 7,158.80, while the Nasdaq Composite rose 374.31 points, or 1.53%, to 24,812.03. The Dow Jones Industrial Average fell 120.07 points, or 0.24%, to 49,190.25.

Earnings Season Update

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First-quarter reporting season has hit full stride, with 139 of the companies in the S&P 500 having reported. Of those, 81% have beaten earnings estimates. Analysts now see aggregate year-on-year S&P 500 earnings growth of 16.1%, up from the 14.4% growth projected at the beginning of the quarter, according to LSEG I/B/E/S.

However, on analyst conference calls, CEOs are increasingly providing downbeat guidance due to spiking fuel costs resulting from the war on Iran. Consumer products company Procter & Gamble warned on its Friday earnings call that it expects a roughly $1 billion hit to its fiscal 2027 profit because of the war-related energy price shock.

Oil Prices and Global Markets

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Oil prices dipped as optimism over potential US-Iran peace talks offset supply concerns. U.S. crude fell 1.51% to settle at $94.40 per barrel, while Brent settled at $105.33 per barrel, down 0.25% on the day.

The dollar dipped but remained on pace for a weekly gain as war uncertainty kept investors on edge. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.3% to 98.53, with the euro up 0.29% at $1.1718.

Cryptocurrencies and Gold

In cryptocurrencies, bitcoin fell 0.43% to $77,588.59, while Ethereum declined 0.34% to $2,318.56. Gold advanced but remained on track for its first weekly loss in five weeks as war-related inflation worries persisted. Spot gold rose 0.58% to $4,719.31 an ounce.

Global Markets

European shares closed lower, dipping to more than a two-week low and logging a weekly decline of 2.5% as investors worried about energy supply disruption by the Middle East conflict. MSCI's gauge of stocks across the globe rose 4.80 points, or 0.45%, to 1,072.11.