Wall Street traded with little direction on Friday, with the S&P 500 gaining 0.1% and heading toward its fourth weekly advance in the past five weeks. According to The Times of India, the Dow Jones Industrial Average added 65 points, or 0.1%, while the Nasdaq Composite also rose 0.1% by 9:35 a.m. Eastern time. US stock futures were mixed before Thursday's opening bell, with S&P 500 futures adding 0.1%, Dow futures declining 0.1%, and Nasdaq futures climbing 0.5%. European markets showed mixed performance, with Britain's FTSE 100 down 0.5% as AstraZeneca dropped 9% after the company reported that a drug trial missed its primary objective, while Germany's DAX and France's CAC 40 were trading higher. Asian markets also traded higher, with South Korea's Kospi advancing 2.5% and Japan's Nikkei 225 gaining 1.2%, marking two of the strongest performances among major global markets.
The US carried out additional airstrikes on Iran, prompting Iran to launch missiles toward Bahrain, Kuwait and Qatar. As reported by The Times of India, the escalation came a day after President Donald Trump declared that the temporary ceasefire was 'over'. According to a regional intelligence official involved in mediation efforts, who spoke anonymously, negotiations aimed at securing a lasting peace remain underway, leaving the outcome uncertain. The conflict has raised fresh concerns over the durability of the fragile ceasefire between the two nations. ING analysts noted that the past few days' price action makes clear that markets were far too relaxed about the risks surrounding the deal and far too bullish on how quickly regional supply could rebound.
Oil prices remained broadly stable despite a series of airstrikes on Iran that were not claimed by any party, following the US announcement that it had concluded its military operations. According to The Times of India, Brent crude, the international benchmark, edged up 0.2% to $76.47 a barrel, remaining above the $72 a barrel level seen at the beginning of the week when prices had slipped below where they stood before the war with Iran. However, oil prices were still far below their wartime peak of nearly $120. Investors remain concerned that any escalation in the conflict could disrupt tanker traffic through the Strait of Hormuz, restricting crude shipments from the Persian Gulf to global markets. ING analysts emphasized that the latest escalation has renewed market concerns about supply disruptions, with the firm noting that higher gas prices may be the primary consumer concern while Wall Street worries about even bigger impacts elsewhere.
Among individual stocks, Delta Air Lines reported strong passenger demand, including broad-based corporate travel, enabling it to offset higher fuel costs between April and June. As reported by The Times of India, the airline reported profit and revenue that exceeded analysts' estimates and issued a summer profit forecast whose midpoint was above market expectations. Despite the stronger-than-expected results, Delta's shares fell 2.5%, with even Friday's decline bringing the stock's year-to-date gains to 28.2%. The corporate earnings season gathers pace next week, with several of the largest US banks scheduled to announce their latest quarterly financial results. AstraZeneca dropped 9% after the company reported that a drug trial for its Wainua drug on a rare type of heart disease didn't meet its primary objective. Semiconductor stocks were among the biggest drags on the S&P 500, with Micron Technology falling 2.3%.
In European trading around midday, Britain's FTSE 100 was down 0.5% as AstraZeneca dropped 9%, while Germany's DAX and France's CAC 40 were up. In Asia, Japan's Nikkei 225 recovered 1.4% to 67,743.85 and South Korea's Kospi climbed 0.6% to 7,291.91. China's Shanghai Composite climbed 1.7% to 4,036.59 despite the country's producer price index increasing 4.1% in June from a year earlier. The euro rose as expectations that the ECB could deliver another interest-rate rise in September supported the currency, while sterling rose to a one-year high against the euro and a three-week high versus the dollar as renewed U.S.-Iran tensions boosted expectations that the Bank of England could raise interest rates in response to elevated oil prices. In the bond market, Treasury yields were little changed as oil prices remained steady, with the yield on the benchmark 10-year US Treasury note edging up to 4.55% from 4.54% at Thursday's close.
