U.S. stocks were mixed during early trading on Friday, with the Dow Jones Industrial Average declining more than 200 points. Investors are closely monitoring hopes for renewed negotiations between the U.S. and Iran, along with Intel's earnings report. Reports indicate an Iranian delegation is expected to hold talks with Pakistan first, with no immediate contact planned with the United States.
The Dow dropped 203.67 points, or 0.41%, to 49,106.65. The Nasdaq Composite rose 118.50 points, or 0.48%, to 24,557.00. The S&P 500 gained 8.75 points, or 0.12%, to 7,117.15. Media reports citing Pakistani government officials stated that Iran's foreign minister is expected to arrive in Islamabad on Friday evening, raising prospects for U.S.-Iran talks. This news has somewhat cooled the recent rally in oil prices. West Texas Intermediate crude futures traded above $95 per barrel, while Brent crude futures traded above $105 per barrel. Previously, President Trump announced that Israel and Lebanon had agreed to extend a ceasefire for three more weeks. However, reports on Friday indicated that the Iranian delegation is anticipated to meet with Pakistani officials first, with no immediate plans for contact with the U.S. The Middle East conflict has escalated into a maritime standoff in the Strait of Hormuz, with both the U.S. and Iran seizing commercial vessels. On Thursday, Trump stated he had ordered the U.S. Navy to "shoot down and destroy any vessel laying mines in the Strait." Intel's stock surged 27%, becoming the primary driver for the S&P 500's gains. The chipmaker reported first-quarter profits that exceeded Wall Street expectations and provided an optimistic outlook for the current quarter. This added further momentum to the semiconductor sector's rally this week. The iShares Semiconductor ETF has risen for 17 consecutive trading days and is on track for an 11% weekly gain. Nevertheless, the three major indices are set for a mixed weekly performance. The S&P 500 is largely flat for the week, the Dow has declined 0.6%, and the Nasdaq has advanced 0.7%. The Chief Investment Officer of NewEdge Wealth noted that market leadership continues to narrow. "The market is becoming increasingly narrow. While the 'Magnificent Seven' previously performed well, the strength is now effectively concentrated in the semiconductor sector. The world's most cyclical industry is experiencing extraordinary growth. These stocks are projected to achieve 100% earnings growth this year. The question is how to value them and whether the market can absorb this exceptional growth."
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