Technology stocks drove the S&P 500 and Nasdaq to record highs on Friday, overriding persistent inflation concerns from elevated oil prices as investors focused on stronger-than-expected earnings from Intel and SAP.
The S&P 500 rose 0.8 percent to close at a new peak, although the Nasdaq climbed up to 1.9 percent, also marking a record. In contrast, the Dow Jones Industrial Average slipped 0.2 percent to 49,231 points, reflecting a narrow leadership in tech gains.
Intel shares surged 23.6 percent after reporting robust quarterly results and issuing an unexpected profit forecast for the current period, sparking broad enthusiasm across the semiconductor sector. AMD rose nearly 14 percent, Arm gained close to 15 percent, and Nvidia advanced 4.3 percent. Texas Instruments, which had risen sharply the prior day on its own strong results, slipped 1.8 percent.
SAP also contributed to market optimism, with its better-than-anticipated performance providing stability to enterprise software stocks that had faced pressure following weak guidance from ServiceNow the previous day.
Meanwhile, oil prices showed signs of easing amid renewed diplomatic efforts. Brent crude fell 0.7 percent to $104.21 per barrel (approximately €96.40), and WTI crude dropped 2.9 percent to $93.12 (about €86.20), according to Handelsblatt. The decline followed reports of upcoming negotiations between U.S. Envoys and Iranian officials in Islamabad.
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Despite the pullback, oil remains significantly above pre-conflict levels. Since the Iran-related maritime disruptions began in late February, Brent and WTI have traded sharply higher due to the effective halt of tanker traffic through the Strait of Hormuz, a chokepoint that normally handles about one-fifth of global oil and liquefied gas shipments.
The ten-year U.S. Treasury yield edged slightly lower to 4.31 percent, down nearly two basis points from the prior session, as inflation worries persisted despite the oil price retreat. The euro traded at 1.1718 against the dollar, modestly lower after the greenback’s recent advance.
Market breadth showed continued strength, with 1,462 advancing issues on the NYSE compared to 1,278 decliners, and 67 unchanged. The advance-decline ratio improved from Thursday’s 1,189 gainers to 1,573 losers.
Why did tech stocks rally despite high oil prices?
Investors shifted focus to strong corporate earnings, particularly from Intel and SAP, which overshadowed inflation concerns tied to oil. The prospect of diplomatic progress in the Iran situation also reduced immediate fears of further supply disruptions.
How significant is the Strait of Hormuz to global oil flows?
Before the Iran-related escalation, about one-fifth of the world’s oil and liquefied gas passed through the Strait of Hormuz. Its effective closure has been a major driver of elevated oil prices since late February.
