MARKET SNAPSHOT
U.S. stocks fell as oil prices climbed to their highest level in five months amid concerns that the U.S.-Iran conflict could escalate. U.S. Treasury yields rose as investors sought safety from the turmoil in French government bonds. Gold and silver fell, with silver reaching a new low for the year. The U.S. dollar strengthened slightly.
MARKET WRAPS EQUITIES
U.S. stocks fell Friday as oil prices climbed to their highest level in five months amid concerns that the U.S.-Iran conflict could escalate.
The Dow Jones Industrial Average fell 1.2%. The S&P 500 lost 0.5%, and the Nasdaq Composite slipped 0.2%.
Thursday's selloff of artificial intelligence-related stocks cooled down, allowing the tech-heavy Nasdaq to outperform.
The energy sector led gains in the S&P 500 following the gains in oil.
Investors continued their move to less volatile stocks. So far this month, the consumer staples sector has climbed 9.6%, putting it on pace for its best month in 26 years. Other safe-haven sectors, including utilities and health care, are leading S&P 500 gains this month.
American Express weighed on the Dow, with shares falling 3.7%. The credit-card company said it was cutting 5% of its workforce, or about 3,500 jobs, citing the need for a more streamlined business.
Tech stock losses cooled, but concerns about high costs and barriers to AI growth haven't been completely assuaged. SK Hynix, a South Korean memory-chip maker, canceled its plans for a U.S. public offering, which was expected to fund its manufacturing expansion plans.
Stock markets in Asia ended mixed earlier Friday.
China's benchmark Shanghai Composite Index rose 0.9%, the Shenzhen Composite Index jumped 2.4%, and the ChiNext Price Index climbed 4.2%.
Hong Kong's Hang Seng Index closed 0.7% higher.
South Korea's Kospi gained 0.3%.
Japan's Nikkei Stock Average fell 0.3%.
Australia's S&P/ASX 200 Benchmark Index ended flat.
New Zealand's S&P/NZX 50 Index declined 0.1%.
COMMODITIES
Oil prices rose Friday, closing out the week with solid gains as the market remained on edge about the possibility of the Middle East conflict escalating with renewed U.S.-Iran hostilities and further attacks on Saudi energy infrastructure.
December Brent crude settled up 3.1% at $116.72 a barrel, its highest close since April 29 and up 6.2% on the week. West Texas Intermediate for December delivery rose 3.8% to $103.27 a barrel for a 4.3% weekly gain.
Iran has warned that renewed U.S. and Israeli strikes would trigger a wider response targeting airports, oil pipelines and other economic infrastructure across the Persian Gulf, The Wall Street Journal reported Friday.
The warnings came as Washington deploys a third aircraft carrier strike group and additional Marines toward the Middle East, while moving some military personnel away from regional bases amid concerns over potential Iranian retaliation, according to the Journal.
"The overriding bullish influence remains the increasing tensions within the Persian Gulf region," trading advisory firm Ritterbusch & Associates said in a note. The market's ability to shrug off recent improved flows through the Strait of Hormuz "has largely related to an increased geopolitical risk premium as threats to global oil supply in various regions of the globe are on the increase."
Precious metals extended losses with silver reaching a new low for the year and gold settling below the $4,000 level.
Rising oil prices, with the implications for inflation, continue to weigh on gold, Konstantinos Chrysikos of Kudo said in a note. The Fed is expected to leave interest rates unchanged on Wednesday, so the market will focus on the statement and press conference, he said.
"Any hawkish messaging, especially if oil keeps climbing, would likely extend bullion's losses." Any signs of a less restrictive stance could set up a relief rebound, he added.
Front-month gold for October delivery settled down 1.3% in New York at $3,991.10 a troy ounce. Silver fell 1.9% to $53.711 a troy ounce, its lowest settlement since Nov. 26, 2025.
TODAY'S TOP HEADLINES
Consumer Sentiment Declined Slightly in October
Consumer sentiment ticked slightly lower in October, hovering near record-low levels, according to the end-of-month reading from the University of Michigan's survey.
The survey's headline index came in at 48, versus 46.3 in the preliminary October reading and down from 48.1 in September. It is the final reading from the survey before November's midterm elections, with voter frustration about the economy at the center of many campaigns.
Consumers' inflation expectations over both the near term and the long term moved slightly higher.
Trump to Remove Some Tariffs on Canada in Bid to Help Susan Collins
The U.S. on Friday moved to exempt some Canadian products from 50% tariffs in a bid to help Maine Sen. Susan Collins and other Republicans in the upcoming midterm elections.
Duties will be removed on some products used in agriculture, including certain machinery and refrigeration products, packaging and plywood sheets, according to documents posted on the White House website. At the same time, a 50% tariff will be placed on other Canadian goods, including carpet, certain valves, and waste products.
The tariff changes are effective Oct. 30.
Week Ahead for FX, Bonds: Decisions From Fed, Other Central Banks in Focus
An interest-rate decision by the Federal Reserve will be the highlight of a busy week ahead. Rates are widely expected to be left on hold, but hikes are expected in future as data point to a robust U.S. economy.
Rate decisions are also due in Canada and the eurozone. The European Central Bank's decision comes amid budget uncertainty in France that has caused a spike in French borrowing costs, while the U.K. government's budget presentation will also attract attention.
In Asia-Pacific, central bank decisions in Japan, New Zealand and Thailand headline the economic calendar, alongside growth figures from South Korea and Taiwan, plus China's industrial profits and activity surveys.
American Express to Cut 3,500 Jobs
American Express is cutting 5% of its global workforce in an attempt to put a cap on rising costs.
That reduction amounts to about 3,500 jobs, the company said Friday. Chief Executive Stephen Squeri said the job reductions were part of a plan to streamline the organization and invest in business priorities.
"We have got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization," Squeri said in a conference call with analysts.
Apple's iPhone Duo Is on Sale. Good Luck Buying One.
Apple wanted a great launch of an innovative product to usher in its new chief executive. But the iPhone Duo, and the supply chain making it, weren't quite ready.
Apple's new foldable iPhone went on sale in stores Friday and the reviews that greeted CEO John Ternus's big release were mixed. Reviewers liked the device's large inner screen, long battery life and sturdiness. But they panned its cramped front-facing screen, mediocre camera, clunky buttons and heavy weight.
SK Hynix Pauses IPO of Memory-Chip Unit as AI Valuation Fears Mount
SEOUL-SK Hynix has scrapped plans for a major U.S. public offering of its flash-memory subsidiary Solidigm, highlighting deepening investor caution toward artificial-intelligence valuations despite robust demand for AI-related hardware.
The memory-chip maker, a key partner to Nvidia, said Friday that market conditions and broader share-price trends drove the decision, and that the move doesn't reflect any change in growth prospects for Solidigm, which was formed after SK Hynix's acquisition of Intel's NAND flash-memory business.
The Solidigm IPO would have raised funds for a new production facility in the U.S. to meet rising demand, SK Hynix said.
Oil Majors' Quarterly Earnings in Spotlight With Refineries Set to Gain
As companies prepare to post their earnings for the quarter, the spotlight is on oil majors after severe tightness in global fuel markets drove refining margins to all-time highs.
Result: profits are expected to soar.
Overlooked outside of crises and typically starved of investment, refineries are where crude oil is turned into diesel, jet fuel and myriad oil products that power the global economy. While some refineries are independent, a significant portion are operated by the world's oil majors, and over the third quarter they have become a key earnings driver for them.
Expected Major Events for Monday 04:00/THA: Sep Trade data
05:00/JPN: Aug Indexes of Business Conditions - Revision
05:00/SIN: Sep Industrial Production Index
08:20/TAI: Sep Money Supply
21:00/SKA: Oct Consumer Sentiment Index
23:00/SKA: 3Q Advance GDP
23:50/JPN: Sep Services Producer Price Index
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