US sharemarkets finished mixed on Friday as a pullback in oil prices eased some geopolitical concerns, although continued weakness in semiconductor stocks kept a lid on broader market gains.
The S&P 500 edged up 0.05% to 7,411.98, while the Nasdaq Composite fell 0.64% to 24,975.82. The Dow Jones Industrial Average rose 235.60 points, or 0.46%, to 51,947.25, supported by a 3.5% gain in Apple.
Markets briefly strengthened after reports that Pakistan, with support from China, was exploring a pathway to fresh peace negotiations between the US and Iran. However, investors remained cautious after President Donald Trump said he was considering a “massive attack” on Iran, with reports later indicating he had met senior advisers to discuss further military action.
Oil prices retreated from recent highs as hopes for diplomacy emerged. Brent crude fell almost 4% to settle at US$96.78 a barrel, while West Texas Intermediate declined 3% to US$89.31. Despite the pullback, energy markets remained sensitive to the risk of further disruption in the Strait of Hormuz.
Semiconductor stocks remained under pressure. Intel reversed early gains to finish nearly 8% lower despite beating quarterly expectations, while Micron Technology dropped 7%, Advanced Micro Devices lost 3.3% and Broadcom fell 2.7%. The VanEck Semiconductor ETF declined 3%, extending a difficult period for the sector.
For the week, the S&P 500 lost 0.6%, the Nasdaq fell 2.1% and the Dow slipped 0.4%, marking a third consecutive weekly decline for the blue-chip index.
Australian Market Outlook
Australian shares are expected to open higher after local futures outperformed Wall Street, although investors remain focused on inflation and interest rate expectations.
S&P/ASX 200 futures are pointing to a gain of 54 points, or 0.6%, after the local market fell 0.8% on Friday.
This week’s key event is Wednesday’s June quarter CPI report, which is expected to provide critical guidance for the Reserve Bank of Australia’s August policy meeting. Investors will also be watching speeches from RBA Governor Michele Bullock and Chief Economist Sarah Hunter, while overseas attention turns to interest rate decisions from the US Federal Reserve, Bank of Japan and Bank of England.
