Highlights
A rebound in US bond yields undercut stocks and left major stock averages narrowly mixed on Friday and lower on the week. The Dow Jones industrial average dipped 0.2 percent while the S&P 500 gained 0.2 percent and the Nasdaq was up 0.4 percent. Oil futures prices declined and the dollar index edged down.
Bond yields rose again on Friday as markets adjust to the view that the Federal Reserve is likely to raise rates again at least once this year in response to rising energy costs. Oil prices on the other hand, decreased as the market hoped for progress on the diplomatic front in the Middle East and reports suggested Saudi oil was again flowing to the market. President Trump is scheduled to meet with representatives of Persian Gulf countries at the United Nations General Assembly next week and Trump reportedly allowed visas for Iranian officials to attend.
Most stocks were lower Friday but ended well above the day’s lows. Among sectors, the AI trade remained relatively buoyant along with travel, airlines, machinery, and biotech. Lagging were rails, media, chemicals, industrial metals, and food stocks.