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US stocks turned mostly lower on Friday as investors navigated a flurry of developments across multiple fronts.
The Dow Jones Industrial Average (^DJI) rose nearly 0.2%. The S&P 500 (^GSPC) erased early morning gains to fall 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.4%.
A Fed governor floated the possibility of interest rate cuts by July, and President Trump put off a decision on whether he would authorize a US strike in Iran.
Meanwhile, chip stocks took a hit after a Wall Street Journal report indicated the US wants to revoke waivers from top global semiconductor manufacturers used for accessing American technology in China. Nvidia (NVDA) fell around 1.1%.
Trump has introduced a self-imposed two-week time limit on deciding whether to enter the Middle East conflict, via a message relayed on Thursday by the White House press secretary. While the move added another layer of uncertainty to an already cautious market, it also opened a window for diplomacy to persuade Iran to negotiate — an idea its president rejected strongly on Friday.
Eyes are now on European efforts to get Iran back to the table and avert further escalation in tensions. Foreign ministers from France, the UK, and Germany are holding talks in Geneva with their Iranian counterpart.
Meanwhile, Fed governor Chris Waller on Friday floated the possibility of rate cuts in July, arguing recent inflation data has been tame even amid the introduction of Trump's tariffs.. The central bank held interest rates steady this week, and Federal Reserve Chair Jerome Powell reiterated that policymakers are not rushing to ease, leading to a fresh attack from Trump.
Waller's comments led to a slight uptick in bets on a July cut, though most traders are betting on the next cut coming in September, according to CME Group.
Read more: The latest on Trump's tariffs
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Coinbase, Circle, SRM lead stock rally as Trump cheers GENIUS Act in another dream week for crypto
Yahoo Finance's David Hollerith reports:
Read more here.
Oil on pace to notch weekly gains as traders wait for Trump decision on Iran
Oil was on track to close out its third week of gains as investors awaited President Trump's decision on whether the US would directly intervene in the Israel-Iran conflict.
West Texas Intermediate futures (CL=F) traded just below $75 per barrel, and Brent crude (BZ=F), the international benchmark, hovered near $76.
WTI and Brent were up nearly 3% for the week after volatile sessions following the outbreak of the Israel-Iran conflict last Friday.
Wall Street analysts have remained cautious on the recent rally.
On Friday, Citi said its researchers "see a lower risk of material energy flow disruptions from the conflict."
"Affecting the oil supply is not to the benefit of Iran or the US. In the event Iran’s 1.1 mbpd of oil exports are disrupted, the team estimates Brent prices could be $75–78/bbl — limited upside from current prices," wrote the analysts.
Chip stocks dive on report US aims to target global manufacturer's chip plants in China
Semiconductor stocks took a hit on Friday after a Wall Street Journal report indicated a top US official told top global semiconductor manufacturers he wants to rescind waivers used to access American technology in China.
The move would once again inflame US-China trade tensions.
Applied Materials (AMAT) and Lam Research (LRCX) both fell roughly 4%. Taiwan Semiconductor Manufacturing Company (TSM) and Broadcom (AVGO) also declined.
Circle gains another 15% amid stunning rally of crypto 'disruptor'
Circle's (CRCL) massive rally shows no signs of cooling.
The stablecoin issuer soared as much as 15% in early trading on Friday, extending its stunning post-IPO surge as Wall Street bets big on crypto’s next major disruptor.
"Circle as a top-tier crypto 'disruptor' with a sizeable future opportunity," Seaport Research Partners analyst Jeff Cantwell wrote on Friday.
"On the back of an improving regulatory climate, we expect adoption globally of stablecoins such as USDC," he added.
Cantwell initiated the stock with a Buy rating and a price target of $235 a share from Seaport Research Partners.
During mid-morning trading on Friday, Circle stock hovered near $228.
The move follows a surge of about 30% on Wednesday following the Senate's passage of the GENIUS Act, legislation that provides a federal framework for stablecoins, which are digital tokens backed by assets, such as the US dollar.
Stocks rise amid growing hopes for diplomacy in Middle East, Fed's Waller dovish comments
US stocks rose on Friday following dovish comments from Fed Governor Chris Waller. Investors also digested President Trump's two-week deadline for deciding whether the US will directly get involved in the Israel-Iran conflict.
The Dow Jones Industrial Average (^DJI) rose 0.3% while the broad-based S&P 500 (^GSPC) gained roughly 0.4%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4%.
Oil prices fell after the White House said Trump would make his decision within two weeks, leaving room for diplomacy. Still, crude futures were on pace for a third week of gains.
Dovish comments also sent stocks higher after Fed governor Chris Waller on CNBC's Squawk Box suggested that the Federal Reserve could move to lower interest rates in July. Waller said that any inflation from tariffs may be short-lived.
Stock futures move higher after Waller says the Fed should consider July rate cuts
US stock futures edged higher ahead of the opening bell, with contracts on the Dow Jones Industrial Average futures (YM=F) and S&P 500 (ES=F) rising roughly 0.3%, and those on the tech-heavy Nasdaq 100 (NQ=F) adding 0.4%.
The move higher followed dovish comments from Fed governor Chris Waller on CNBC's Squawk Box, suggesting that the Federal Reserve could move to lower interest rates in July. Waller argued that any inflation from tariffs may be short-lived.
"Any tariff inflation ... I don't think is going to be that big, and we should just look through it in terms of setting policy," Waller said. "The data the last few months has been showing that trend inflation is looking pretty good ... We could do this as early as July."
Kroger raises sales forecast, backs profit outlook amid 'uncertain' economic backdrop
The Fed is also in 'wait and see' mode about AI taking jobs
A recent memo from Amazon (AMZN) CEO Andy Jassy revived concerns about the scope of change to the labor market from artificial intelligence.
While employers see growth and productivity, employees are worried about massive displacement in their jobs. And now, it's something the Federal Reserve is watching closely too:
Hamza Shaban writes in today's Morning Brief:
Accenture stock slides on weaker-than-expected bookings
Accenture (ACN) stock is down more than 4% after the global consultancy company reported new bookings decreased 6% to $19.7 billion in the quarter.
Earnings topped estimates, with revenue coming in at $17.7 billion for the quarter, compared with analysts' average estimate of $17.30 billion, according to data compiled by LSEG.
Reuters reports:
CarMax stock jumps on solid earnings beat
CarMax (KMX) stock climbed 11% in premarket trading after the used car dealer's first quarter earnings and revenue beat Wall Street expectations.
CarMax sold 379,727 cars in the first quarter, a 5.8% increase from the same period last year.
The company also reported earnings per share of $1.38, and revenue rose 6.1% to $7.55 billion, topping estimates.
CarMax CEO Bill Nash said that its omnichannel buying and selling experience "is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share, and deliver significant year-over-year earnings growth for years to come.”
$6.5 trillion 'triple witching' spells more volatility for stocks
Bloomberg reports:
Trending tickers: Tesla, Wolfspeed and GMS
Here are some top stocks trending on Yahoo Finance in premarket trading:
Tesla (TSLA) stock rose over 1% before the bell following reports that the EV maker had signed a $557 million energy storage station deal. This deal was announced two days before Elon Musk's expected launch of its robotaxi.
Semiconductor maker, Wolfspeed's (WOLF) stock fell 4% premarket after reports emerged on Thursday it would be taken over by creditors inculding Apollo Global Management. The chipmaker has been struggling recently and the new proposal would put them into bankruptcy.
GMS (GMS) stock was up 23% after the Wall Street Journal (WSJ) reported that Home Depot (HD) the home-improvement giant, has made an offer to acquire GMS, a building-products distribution company, citing people familiar with the matter. The WSJ did not specify a price.
Good morning. Here's what's happening today.
China warning on toys like Labubu sends Pop Mart stock sliding
Shares of Pop Mart (9992.HK, PMRTY) slid in Hong Kong after a call for stricter regulation of blind-box and trading cards in Chinese state media.
That fueled concerns about prospects for the maker of furry Labubu elf dolls, whose explosive popularity has helped lift Beijing-based Pop Mart's market cap to around $40 billion — twice that of Hasbro (HAS) and Mattel (MAT) combined.
Bloomberg reports:
Oil prices on track for third week of consecutive gains
Oil prices look set to end this week with gains for the third consecutive week in a row. Extreme tensions in the Middle East have put consistent upwards pressure on the commodity, with the recent eruption into outright violence leaving investors looking at supply chains and production facilities with concern.
Reuters reports: `
