S&P 500 Dow Jones Nasdaq Friday: U.S Stock Market on Friday: S&P 500, Dow Jones, Nasdaq to end week in high at Wall Street? Check share market forecast
Oil and Gold Prices
U.S. crude oil futures, which had been low throughout the week, were up more than 2 percent from Thursday’s $96.8 per barrel. The gold price fell by 0.08 percent.
Iran-US War
Iran’s top joint military command said the United States targeted an Iranian oil tanker and another ship that entered the Strait of Hormuz. The US military said it acted in self-defense after Iran attacked Navy destroyers passing through the strait. It was stated that Iran did not damage any US assets in the attack, and US President Donald Trump told ABC News that the ceasefire with Iran continues.
The attacks come as Washington awaits Iran’s response to a US proposal that would stop the war but leave the most controversial issues, such as Iran’s nuclear program, unresolved for now.
Foreign Exchange Markets
Nikkei futures pointed to a slightly lower open for Japanese stocks, which rose to record highs on Thursday. Increasing tension in foreign exchange markets helped the dollar recover from its recent lows, leading to a mostly stable completion of the week.
The yen has struggled to strengthen past the 155 level against the dollar, despite data showing authorities in Tokyo may have sold as much as $67 billion to defend the currency this week and last.
The yen was last traded at 156.88 per dollar and the euro was traded at $1.1726. US Treasury Secretary Scott Bessent will visit Tokyo next week, and markets will be alert to any comments he might make about the yen or Japan’s monetary policy, given his past statements in favor of faster rate hikes.
US Payroll Report
A Reuters poll of economists shows investors are awaiting the U.S. nonfarm payrolls report on Friday, with employment expected to rise by 62,000 in April after rising to 178,000 in March.
Bond Market
In the bond market, Treasury bond yields rose after oil prices eased their decline. The yield on the 10-year Treasury note rose to 4.38 percent from 4.36 percent on Wednesday.
Higher yields could increase rates on mortgages and other types of loans to U.S. households and businesses, which could slow the economy. Higher returns also tend to push down the prices of stocks and other types of investments.
Before the war, the 10-year Treasury bond yield was only 3.97 percent.
On Thursday, the S&P 500 fell 0.4 percent from the all-time high it set the day before. The Dow Jones Industrial Average fell 313 points, or 0.6 percent, and the Nasdaq composite fell 0.1 percent from its own record. Overall, the S&P 500 fell 28.01 points to 7,337.11 points. The Dow Jones Industrial Average decreased by 313.62 points to 49,596.97, and the Nasdaq composite index decreased by 32.75 points to 25,806.20 points.
Wall Street saw even sharper swings early in the war, when hopes for reopening the Strait of Hormuz rose but were quickly dashed. This could happen again. Iran has established a government agency to inspect and tax ships seeking passage through the strait, a maritime data company reported Thursday; This is a move that could increase fuel costs.
Despite all the uncertainty surrounding the war, a strong parade of US companies reporting larger profits than analysts expected at the start of the year helped support the US stock market. Stock prices tend to follow the path of corporate profits over the long term.
