S&P 500, Nasdaq, Dow Jones
S&P 500 and Nasdaq closed at record highs on Friday, bolstered by optimism for possible negotiations between the U.S. and Iran to end their war and a surge in Intel shares that extended the rally in semiconductor stocks. The Dow Jones Industrial Average fell 79.61 points, or 0.16 per cent, to 49,230.71, the S&P 500 gained 56.68 points, or 0.80 per cent, to 7,165.08 and the Nasdaq Composite gained 398.09 points, or 1.63 per cent, to 24,836.60.
Oil climbed on Monday while U.S. stock futures slipped as stalled U.S.-Iran peace talks prolonged the disruption of Middle East energy exports, unsettling markets and policymakers ahead of a packed week of central bank meetings. Benchmark Brent crude futures rose more than 2 per cent to touch a three-week high of $107.97 a barrel in early Asia trade, stoking inflation worries that have prompted traders to all but price out rate cuts this year.
Oil prices whipsawed in volatile trade on Friday, but were higher on the week, as traders weighed supply disruptions against the potential restart of peace talks between the U.S. and Iran that could help limit those disruptions. Brent crude futures settled at $105.33 a barrel, rising 26 cents, or about 0.3 per cent.
The U.S. dollar was higher although not by much, leaving the euro down 0.15% at $1.1706 and the yen marginally weaker at 159.53 per dollar.
US-Iran War
While a ceasefire has frozen most fighting in the war triggered by U.S.-Israeli strikes on Iran two months ago, markets are focused on the shuttered Strait of Hormuz, the key chokepoint behind surging energy prices.
U.S. Treasuries
U.S. Treasuries firmed on Friday in choppy trading, with Middle East headlines in focus after news that peace talks between the United States and Iran could take place over the weekend, boosting optimism that their conflict may soon wind down. In afternoon trading, the benchmark 10-year Treasury yield fell 1.3 basis points to 4.309 per cent.
