US stocks edged lower on Friday as investors remained cautious following a sharp sell-off in technology stocks, while rising oil prices and concerns about renewed conflict in the Middle East added to market uncertainty.
The S&P 500 fell 0.51%, while the Dow Jones Industrial Average dropped 536 points.
The Nasdaq Composite declined 0.41%, signalling further pressure on technology shares after the Nasdaq Composite lost nearly 3% on Thursday.
Telecommunications stocks also came under pressure after reports that SpaceX was in discussions with cellular infrastructure companies about launching a nationwide wireless carrier programme.
Meanwhile, rising crude prices renewed concerns about inflation ahead of next week’s Federal Reserve policy meeting.
Telecom stocks fall as SpaceX explores wireless expansion
AT&T, Verizon and T-Mobile fell between 2% and 4% in trading following reports of SpaceX’s potential expansion into the US wireless market.
The development raised concerns about increased competition for established telecommunications providers.
The news had the opposite effect on cell tower operators. Crown Castle shares rose 13.6%, while American Tower gained 6.99%.
Technology stocks remained under pressure after Thursday’s sell-off, when Meta Platforms fell nearly 8% following its quarterly results.
The company reported its first cash outflow in more than a decade, intensifying concerns about the financial impact of its artificial intelligence investments.
CoreWeave, which has faced scrutiny over its debt burden and the cost of financing AI infrastructure, declined another 1.46% in trading on Friday. Microsoft and Meta shares were also slightly lower.
The latest weakness followed a brief recovery on Wednesday, when upbeat results from SpaceX and Super Micro Computer helped lift AI-related shares.
Chipmakers Micron Technology and Advanced Micro Devices were showing modest gains.
Investors are also looking ahead to earnings from Microsoft, Alphabet and Amazon next week, with results expected to provide further insight into technology spending and demand for AI infrastructure.
Oil prices rise as Middle East risks fuel inflation concerns
Oil prices continued to climb on Friday as concerns about potential disruptions to Middle Eastern supplies supported crude markets.
US West Texas Intermediate futures rose 1.89% to $101.35 a barrel, while Brent crude gained 1.59% to $114.94.
The increases followed reports that the US and Israel were considering plans for renewed attacks on Iran amid the regional conflict that began in late February.
Higher energy prices added to inflation concerns ahead of the Federal Reserve’s meeting next week.
Markets broadly expect the central bank to leave interest rates unchanged, while expectations of a rate hike this month have declined following comments from officials suggesting there is little urgency to tighten policy.
The 10-year US Treasury yield rose one basis point to 4.968% on Friday after falling sharply in the previous session as investors sought the relative safety of government bonds.
The 30-year yield was flat, while the two-year yield declined two basis points.
Earnings outlook improves as investors assess market volatility
Despite the recent technology sell-off, forecasts for corporate earnings have strengthened.
Growth in third-quarter S&P 500 profits is now projected at 32.3%, up from the previous estimate of 30.7%, according to LSEG data.
Other movers included American Express, which fell 2.2% despite raising its 2026 profit forecast after reporting strong third-quarter results.
Oilfield services provider SLB gained 1.3% after beating analysts’ profit estimates.
Gold miner Newmont dropped 1.18% after reporting quarterly results and warning that unit costs were expected to rise in 2027.
Bloom Energy declined 10% despite raising its fiscal 2026 forecast.
For the week, the Nasdaq was on track to lose 0.5%, while the S&P 500 was heading for a gain of less than 0.1%.
The Dow was positioned for a 1.7% advance, supported by defensive sectors as investors sought to limit exposure to technology-market volatility.
The post Dow opens 500 points lower as oil prices rise and tech stocks face renewed pressure appeared first on Invezz
