MARKET SNAPSHOT
U.S. stocks rose, led by the Dow industrials, as the bond selloff cooled off Friday afternoon. Gold rose as the dollar slipped. Oil prices settled lower.
MARKET WRAPS EQUITIES
U.S. stocks recovered from a couple of down sessions as oil prices fell on hopes for progress toward an agreement between the U.S. and Iran to open the Strait of Hormuz.
The Dow Jones Industrial Average set the pace for Friday's gains, rising 0.9%. The tech-heavy Nasdaq Composite climbed 0.5%. The S&P 500 moved up 0.5%
The indices finished the week higher, despite a midweek selloff.
Friday morning, consumer sentiment numbers from the University of Michigan came in slightly higher than previously reported. Those figures kept inflation concerns front and center amid a potentially overheating economy.
Asian equities were mixed, with many markets closed for holidays.
Hong Kong's Hang Seng Index was 1.0% lower, while Japan's Nikkei Stock Average rose 1.3%. South Korea, Taiwan and China were closed.
The high-profile summit between Chinese leader Xi Jinping and President Trump did little to lift the market mood, yielding no meaningful outcomes, as had been widely expected.
The two sides agreed to a modest two-month extension to the existing trade detente, but that still leaves "issues over tariffs, agricultural purchases, rare earths, and technology restrictions unresolved," said Lloyd Chan, senior currency analyst at MUFG.
Stocks in Australia slipped Friday, as the S&P/ASX 200 Benchmark Index dropped 0.4%. In New Zealand, the S&P/NZX 50 Index fell 0.1%.
COMMODITIES
Crude futures settled lower with the market watching for any breakthrough in diplomatic efforts to reopen the Strait of Hormuz, but while Brent edged up 0.4% on the week, U.S. benchmark WTI fell 3.8%.
WTI faces pressure from the U.S. market, which saw a weekly build in commercial crude stocks and a drop in refinery runs, said XS.com market analyst Linh Tran. "These factors have weakened WTI, while Brent remains supported by concerns over disruptions to international supply, pushing the spread between the two benchmarks to more than $10 per barrel." The possibility of a U.S. diesel export ban, although undecided, could further pressure WTI as refiners would have less incentive to raise operating rates and buy additional crude, she added.
WTI settled down 2.3% at $92.41 a barrel and Brent fell 2.1% to $104.32.
Gold futures snapped a four-session losing streak as the U.S. dollar pulled back following four straight sessions of gains.
Front-month gold gained 0.5% in New York to $4,286.20 a troy ounce, for a weekly loss of 2.3%. Silver rose 1.2% to $64.245 a troy ounce, ending the week down 3.5%.
"Looking ahead, further softness in oil, the dollar and yields could support bullion, while stronger data and hawkish Fed guidance remain headwinds," Kaynat Chainwala of Kotak Neo said in a note.
TODAY'S TOP HEADLINES
U.S., China Agree to Trim Tariffs, Start AI Dialogue
The U.S. and China said they agreed to a $30 billion reciprocal tariff reduction and to launch a bilateral dialogue on artificial intelligence, two tangible outcomes from Chinese leader Xi Jinping's recently concluded summit meeting in Washington with President Trump.
The two sides also confirmed plans for the leaders to meet twice more this year, at the Asia-Pacific Economic Cooperation summit held in the Chinese city of Shenzhen in November and the Group of 20 leaders meeting in Miami the following month.
Trump and Xi agreed to build a "constructive relationship of strategic stability" during the summit, said a statement from China's Ministry of Foreign Affairs on Saturday.
Consumer Sentiment Ticked Lower in September
Consumer sentiment declined in September, according to the University of Michigan's monthly survey, but the mood improved from the survey's preliminary reading.
The survey's headline index landed at 48.1, versus 47.8 in its initial September reading published earlier this month. That was still a decline from August, when the reading was 51.7.
"Overall, interviews reveal broad agreement across the political spectrum that the outlook for the economy has weakened since the beginning of the year," the survey's director, Joanne Hsu, said. "After particularly large declines in sentiment this month, Republican sentiment is now 20% lower than January 2026; Democrats are down 13% over the same period," Hsu said.
Week Ahead for FX, Bonds: U.S. Jobs Data in Focus as Another Fed Rate Hike Looks Possible
U.S. jobs data for September will be the key highlight in the coming week as investors seek to gauge the likelihood of the Federal Reserve raising interest rates in October, which would mark a second consecutive increase.
In Europe, eurozone inflation data will attract attention. In Asia, China's PMI reading and a central bank decision in Australia are the main events.
Market participants will stay focused on the global bond selloff and fluctuations in energy prices as the Middle East conflict drives up economic costs across the region.
Deep Divides and Missed Deals Cloud Trump-Xi Visit
WASHINGTON-When Xi Jinping took his seat at the candlelit state dinner held in his honor Thursday night, President Trump in black tie beside him, the Chinese leader was dressed in a Mao suit-the high-collared tunic long associated with Communist Party authority.
In a room built to celebrate a friendship, Xi had come as the embodiment of the modern authoritarian system he leads, one built on pervasive party control, now fused with some of the world's most advanced surveillance technologies.
Xi's sartorial choice captured something about the relationship the two men had spent the day performing. Trump lavished praise on his bond with Xi, calling it the best the two countries' leaders have ever had. He gave Xi a bald eagle statue and declared the two had "never gotten along better." Xi didn't answer in kind.
A Storied Indian Business Empire Is Being Torn Apart by Infighting
For more than a century, India's Tata business empire prided itself as a steward of a brand of capitalism that gives priority to social welfare and the country's national interests over short-term corporate strategy and the pursuit of personal wealth for its owners.
Now, pressure from authorities to list the main holding vehicle for the group's sprawling interests has set off an internal battle that threatens the future of one of India's most storied conglomerates.
The fight is between Noel Tata, the 69-year-old scion of the Tata founding family, and N. Chandrasekaran, chairman of Tata Sons, the main holding company that controls businesses spanning manufacturing, corporate services, steel, cars, salt and aviation.
Blackstone's Top Private-Equity Executive Is Preparing to Leave Firm
Blackstone's top private-equity executive, Joseph Baratta, is preparing to leave the firm, according to people familiar with the matter, the latest in a series of departures by senior leaders from the private-investment giant.
Baratta, who has been with Blackstone for nearly three decades, has been the firm's global head of private equity since 2012 and is one of its most senior executives. He is also a Blackstone board member and part of the firm's management committee. The exact timing of his departure hasn't been determined, but it is likely to come around the end of this year, the people said.
A spokeswoman for Blackstone confirmed Baratta's pending departure.
Microsoft Launches Copilot 'Super App' in Push to Monetize AI
Microsoft announced an updated Copilot app on Friday as the tech giant takes another step to monetize its artificial intelligence and compete with fellow AI labs.
The company said it's making big changes to its Copilot app. This includes introducing Office in Copilot, which allows users to ask the AI chatbot to create a document, spreadsheet, or other file right in the app. Copilot will then create a Word, Excel or PowerPoint file in real time.
Microsoft also introduced Autopilot in Copilot, which is the new name for Scout, Microsoft's AI agent. Autopilot can actively complete tasks for a user.
Expected Major Events for Monday 01:30/CHN: Aug Industrial Profit
04:00/MAL: Aug PPI
05:00/SIN: Aug Industrial Production Index
21:00/SKA: Oct Business Survey Index
23:50/JPN: Sep Provisional Trade Statistics for 1st 10 days of Month
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