US Stocks Close Higher as Oil Prices Ease This Week

US stocks closed out their first winning week in three on Friday, as a pullback in oil prices eased pressure that had been building on Wall Street.

Oil pullback breaks a losing streak

The S&P 500 added 0.5%, breaking a three-day losing streak marked by sharp swings tied to rising bond yields. Despite the week’s turbulence, the index pulled back within 0.7% of the all-time high it set last month. The Dow Jones Industrial Average added 478 points, or 0.9%, and the Nasdaq composite climbed 0.5%.

Stocks got a lift after Brent crude fell 2.8% to $97.44 a barrel. Oil prices have been swinging on uncertainty over when the war with Iran will let crude flow freely again from the Middle East, dropping on hopes of a deal to fully reopen the Strait of Hormuz and rising when those hopes fade.

Inflation expectations jolt Treasury yields

Trading stayed shaky Friday, particularly after a consumer sentiment report pushed Treasury yields higher in the morning. The University of Michigan survey found consumers now expect 4.6% inflation over the coming year, up from a 4% forecast the month before, though overall sentiment was less gloomy than economists expected, even at a four-month low.

Rising inflation expectations carry risk for the economy, since they can encourage behavior that fuels a cycle of ever-higher prices. Some consumers told the survey they’d buy certain products now to avoid paying more later — a rush that, if widespread, could push sellers to raise prices further.

Following the report, the 10-year Treasury yield briefly jumped to 5.22% from 5.18% late Thursday, nearing its highest level since 2007. Higher yields slow the economy by raising borrowing costs while undercutting stock and investment prices. The 10-year yield has climbed steadily since the war with Iran began, when it stood at 3.97%, driven by inflation worries, expensive oil, large government debt loads and signs of continued economic strength.

Yields eased later in the session as oil prices fell further, with the 10-year yield slipping back to 5.15% and helping stocks regain strength.

Akamai and Costco lead individual gainers

Akamai Technologies rose 3.2% after announcing an $11.6 billion, multiyear agreement with Anthropic, the company behind the Claude AI chatbot. Costco Wholesale climbed 2.9% after posting stronger quarterly profit than analysts expected, part of a run of strong corporate earnings that has helped the market stay resilient despite inflation and oil worries.

In total, the S&P 500 rose 39.28 points to 7,743.41, the Dow gained 478.64 points to 51,828.62, and the Nasdaq composite added 129.34 points to 27,068.72.

Mixed trading overseas

Markets abroad were mixed, with European indexes little changed following bigger moves in Asia. Japan’s Nikkei 225 climbed 1.3%, while Hong Kong’s Hang Seng dropped 1%.