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S&P 500 Snaps 7-Day Winning Streak as Wall Street Logs Back-to-Back Weekly Gains

-- The S&P 500 retreated Friday following a seven-day advance ahead of upcoming talks between the US and Iran, while Wall Street notched its second consecutive weekly gain.

The index slipped 0.1% to 6,816.9, and the Dow Jones Industrial Average shed 0.6% to 47,916.6. The Nasdaq Composite rose 0.4% to 22,902.9, its eight consecutive day of gains.

Most sectors ended in the red, led by consumer staples, while tech paced the gainers.

This week, the Nasdaq rallied 4.7%, the S&P 500 advanced 3.6%, and the Dow climbed 3%.

"In another week of high drama, markets ended in a calmer fashion, awaiting this weekend's direct talks between the US and Iran in Islamabad around the 14-day ceasefire," said Douglas Porter, chief economist at BMO, said in a report.

The focus shifts to Pakistan, where officials from Washington and Tehran are expected to meet on Saturday. The truce, which Pakistan helped broker, appeared to be holding so far, though there's uncertainty around the outcome of these talks.

Fighting between Israel and Iran-backed Hezbollah continued in Lebanon, CNN reported Friday. Iran's parliament speaker, Mohammad Bagher Ghalibaf, said talks will begin only if there is a ceasefire in Lebanon and blocked Iranian assets are released.

West Texas Intermediate crude oil was down 2.3% to $95.63 a barrel in Friday late-afternoon trade.

In economic news, US consumer inflation accelerated to its highest monthly reading in nearly four years in March as the Middle East conflict sent energy prices sharply higher, official data showed.

"The fallout of the US/Israel-Iran war was evident in the March consumer price index," Oxford Economics said in a note.

US consumer sentiment hit the lowest on record this month, reflecting heightened worries about higher prices and the overall economic fallout from the Middle East conflict, a survey by the University of Michigan showed.

US Treasury yields were higher, with the 10-year rate last up 4.3 basis points at 4.32% and the two-year rate rising 4.1 basis points to 3.81%.

In company news, ServiceNow (NOW) shares slumped 7.6%, among the worst performers on the S&P 500.

The enterprise software company's competitive advantage may have been eroded amid growing evidence that workflow automation tasks can be automated by harnessing artificial intelligence models, UBS Securities said in a note. The brokerage downgraded its rating on the stock to neutral from buy and slashed its price target to $100 from $170.

CoreWeave (CRWV) shares jumped nearly 11% after the AI cloud computing company struck a deal to support the development and deployment of Anthropic's Claude AI models.

Major tech names advanced, with Nvidia (NVDA) up 2.6%, the biggest gainer on the Dow, while Super Micro Computer (SMCI) jumped 8.8%, the best performer on the S&P 500. Broadcom (AVGO), Advanced Micro Devices (AMD), and Amazon.com (AMZN) also notched gains.

Cloudflare (NET) shares tumbled nearly 14% amid an extended sell-off. The slump offers a buying opportunity, while concerns around Project Glasswing are "overblown" as the cloud-services company is seen benefitting from projected exponential growth in agentic artificial intelligence applications, Oppenheimer said Friday.

Project Glasswing is a cross-industry coalition formed to "secure the world's most critical software," Anthropic said in a statement. The alliance, which will be using Anthropic's unreleased Claude Mythos frontier model, includes several big tech names including Amazon Web Services, Broadcom and Nvidia.

Gold was down 0.6% at $4,790 per troy ounce, while silver rose 0.1% to $76.48 per ounce.

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Sectors

Update: Gold Moves Lower Again as Dollar Rises On U.S. Retail Sales Surge and Hopes of An End To Middle East War

(Updates prices.)Gold prices were down a second day midafternoon Tuesday as the dollar rose after U.S. retail sales rose above expectations last month, while talks between the United States and Iran could see an end to the Middle East war that has sent the price of oil and other commodities higher.Gold for May delivery was last seen down US$105.50 to US$4,723.30 per ounce.The U.S. Census Bureau on Tuesday said March retail sales rose by 1.7%, up from a revised 0.7% a month earlier and ahead of the consensus estimate for a rise of 1.5%, according to Marketwatch. The rise was the highest in more than three years, CNN reported, but came on a record jump in gasoline prices due to the U.S. war on Iran.Talks to end the war are expected to begin in Pakistan as a two-week ceasefire is set to end tomorrow. A deal could see an end to the closure of the Strait of Hormuz and lower high prices for oil and other commodities trapped in the Persian Gulf. However, Iran has not publicly confirmed it will send negotiators to Pakistan to meet with the United States, though the Wall Street Journal reports Iran has told mediators it will send a team to the talks."Gold is consolidating as traders assess the prospects for renewed US-Iran talks and the approaching ceasefire deadline. Its near-term trajectory remains closely linked to developments in the Middle East, given the potential spillover into inflation expectations, the dollar, bond yields, and US rate outlook," Saxo Bank wrote.The dollar was higher early, with the ICE dollar index was last seen up 0.33 points to 98.43. Treasury yields were also higher, with the yield on the U.S. two-year note up 6.3 basis points to 3.788%, while the yield on the 10-year note was paying 4.297%, up 4.3 points.

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Sectors

Sector Update: Consumer Stocks Ease in Afternoon Trading

Consumer stocks were lower Tuesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.3% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) decreasing 0.2%.In sector news, Redbook US same-store sales rose by 6.7% from a year earlier in the week ended April 18 after a 7% year-over-year increase in the previous week. "Some retailers reported weaker year-over-year Easter sales, facing challenging comparisons to last year's pre-Easter shopping week in April," Redbook noted. Sales of home improvement items and outdoor merchandise picked up as spring began while household basics, food and consumables held steady.In corporate news, Tractor Supply (TSCO) reported Q1 results that missed Wall Street's projections amid a below-average performance of its companion animal product business. Its shares dropped past 10%.D.R. Horton's (DHI) fiscal Q2 results came in better than expected, although the homebuilder tempered its full-year revenue outlook. Its shares rose past 7%.Estee Lauder (EL) has hired JPMorgan (JPM) to come up with a financing package of about 5 billion euros ($5.88 billion) to fund its takeover of Puig, Spanish business newspaper Expansion reported Tuesday. Estee Lauder shares were down 1.4%.

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Commodities

Zelenskyy Says Druzhba Pipeline Restored, Fuel Supplies Secured for April-May

Ukraine's President Volodymyr Zelenskyy said Tuesday that the Druzhba pipeline has been restored, as Kyiv pushes for energy funding and protection of its infrastructure.Zelenskyy said in a post on X that repair work on the Druzhba oil pipeline segment damaged by a Russian strike has been completed, allowing operations to resume.He cautioned that "no one can currently guarantee that Russia will not repeat attacks," despite efforts to restore pipeline functionality and safeguard infrastructure.The pipeline restoration is linked to the expected unblocking of a European Union support package already approved by the European Council, he said.Zelenskyy added Ukraine has fulfilled its commitments under initial European Union negotiation clusters and called for continued sanctions pressure on Russia alongside efforts to diversify Europe's energy supplies.Ukraine is also coordinating closely with partners to ensure stable energy cooperation as global disruptions linked to the Iran conflict impact fuel markets, Zelenskyy added.He noted that agreed fuel supply volumes for April and May have been fully secured.Ukraine is also preparing for an Energy Ramstein meeting later this week, aimed at accelerating funding efforts for energy system recovery and strengthening protection of critical infrastructure, he added.