Update: US Equity Indexes Rise, Crude Oil Extends Declines as Diplomatic Channels Reopen for Iran Talks
(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes rose on a data-light Friday, while crude oil declined as Washington replaced air strikes on Iran with diplomatic engagements, an exercise President Donald Trump appears to have ordered as retribution for the Islamic Republic hitting maritime traffic in the Strait of Hormuz.The Nasdaq Composite edged up 0.2% to 26,266.3, with the Dow Jones Industrial Average up 0.3% to 52,622.8 and the S&P 500 higher by 0.3% to 7,566.4 after midday. All but three sectors, healthcare, energy, and real estate, advanced intraday. Materials led the gainers.The CBOE Volatility Index, also known as the fear gauge, dropped 3.6% to 15.27.Talks between the US and Iran over a permanent peace deal are continuing, Bloomberg reported, citing an American official. The US is still committed to finding a diplomatic solution with Iran, the official told Bloomberg on Thursday. The official described the ongoing discussions as technical talks.A diplomat told CNN that Qatari negotiators have traveled to Iran to meet officials there. Qatari mediators are in touch with US officials, including the special envoys, Jared Kushner and Steve Witkoff, Middle Eastern broadcaster Al Jazeera reported. US Vice President JD Vance is also involved in the talks, the Al Jazeera report said.Meanwhile, President Trump said Tehran and US agreed to continue talks, but he communicated to Iran that the ceasefire is "over," Al Jazeera reported, citing a social media post from the president.The front-month global benchmark North Sea Brent retreated 0.7% to $75.79 a barrel, while the US West Texas Intermediate dropped 1.1% to $71.27 a barrel, extending declines from Thursday.Most US Treasury yields rose, with the 10-year up 1.8 basis points to 4.56% and the two-year climbing four basis points to 4.2%.In precious metal markets, gold futures fell 0.4% to $4,124.4, and silver futures declined 0.7% to $60.34.The International Energy Agency on Friday projected a smaller decline in global oil demand in 2026 amid signs of a rebound in consumption as crude flows improve."A recovery in world oil demand is underway, with consumption set to rise from its May nadir on seasonal trends and as pent-up demand is released in line with a rebound in product supplies," the IEA said in its latest monthly oil market report. "The upswing in fuel use during the peak summer travel season is set to get an additional boost from the release of pent-up demand."In company news, SK Hynix (SKHY, SKHYV) said Friday that it has listed its American depositary receipts on Nasdaq. The company said in a regulatory filing Friday that it is offering 177.9 million American depositary shares at $149 apiece, potentially raising total proceeds of $26.51 billion.Shares of Meta Platforms (META) jumped 5%, the top gainer on the S&P 500 and the Nasdaq, after a Bloomberg report cited Chief Executive Mark Zuckerberg as saying the company is considering renting out some of its artificial intelligence compute as demand for AI infrastructure surges.
