Stocks rose Friday as tech shares bounced back from a rough trading session and oil prices fell after President Trump vowed not to strike Iran before the midterm elections.
The blue-chip Dow jumped 423 points, or 0.8%, while the Nasdaq gained 0.6% – rebounding from a losing session on Thursday following reports that OpenAI had recorded $50 billion in annualized revenue, far below estimates of a reported $68 billion figure.
SpaceX rose 1.3% Thursday, leading the tech sector higher after Elon Musk’s company secured a massive spectrum license deal – sending shares of AT&T, Verizon and T-Mobile lower.
Brent crude oil futures, meanwhile, rose 0.4% to $104.72 a barrel, while West Texas Intermediate crude also rose 0.4% to $91.85.
Trump wrote in a Thursday post on Truth Social that the US “will not be attacking Iran at any time prior to the Midterm Elections,” following reports that the president was weighing whether to resume a large-scale operation.
A global bond sell-off continued, though it seems to be losing steam. The US 10-year Treasury yield hit 5.259% and the US 30-year Treasury yield ticked up to 5.622%, though both were lower than multi-decade highs seen earlier in the week.
Bob Edwards, chief investment officer of Edwards Asset Management, argued recent market jitters have presented good buying opportunities for investors.
“Higher oil prices, geopolitical conflict, rising yields, AI investment concerns and November’s midterm elections have contributed to investor pessimism,” he wrote in a Friday note.
“Yet technology stocks have demonstrated resilience, earnings expectations remain robust, and I believe the eventual resolution of election uncertainty could provide another catalyst for equities.”
Brent had jumped as much as 5% Thursday, pushing bond yields higher and sending stocks lower, as Iranian attacks on vessels in the Strait of Hormuz disrupted tanker traffic – threatening to keep oil and gasoline prices higher for longer.
Oil producers off the US Gulf Coast were also forced to cut production due to an intensifying hurricane, further restricting supply.
National average gasoline prices have remained stubbornly above $4 a gallon, and diesel prices have been stuck above $6. The latter is a major concern for economists, since the pricier fuel is used in heavy trucks that move food, apparel and other goods around the country – meaning higher diesel prices can easily push up price tags at the grocery store.
Trump has taken steps to boost US diesel supply, signing an executive order to allow a more widespread use of tax-exempt diesel and securing a G7 agreement to release up to 100 million barrels of diesel and crude within the next few months.
However, experts have warned these tactics are unlikely to have much of an impact on US prices at the pump beyond a few pennies’ difference.