US close: Wall Street ends higher as oil eases, AI stocks rally

(Sharecast News) - US stocks rebounded on Friday after three days in the red as oil prices fell amid growing optimism that the Strait of Hormuz could be reopened, while bond yields eased from a 19-year high.

Technology stocks were providing a lift, benefitting from renewed enthusiasm around AI, helping the Dow rise 0.9% and the S&P 500 and Nasdaq both gain 0.5%.

Axel Rudolph, senior technical analyst at IG, said: "US stocks edge higher as a pause in surging Treasury yields eases pressure on corporate borrowing conditions, while falling oil prices provide further support after signs of progress towards a US-Iran agreement to ease Persian Gulf shipping blockades and economic restrictions on Tehran."

Brent crude futures were down 2% at $104.45 a barrel on hopes of diplomatic progress between Washington and Tehran. Iran's foreign minister Abbas Araghchi said Tehran was prepared to restore passage through the waterway and restart nuclear talks with the US within seven days if Washington accepted its conditions.

Reuters also reported that US and Iranian negotiators in New York were weighing a phased agreement to end the conflict in the Middle East.

Meanwhile, US bonds rebounded after their recent sell-off, with the 10-year US Treasury yield easing to 5.165%, Yields hit a high of 5.227% on Thursday, their highest point since July 2007, following hawkish remarks from Federal Reserve governor Michael Barr, persistently elevated energy prices linked to the Iran conflict, and a hotterthanexpected PMI print. According to CME's FedWatch tool, futures pricing now implies around a 68% chance of a rate hike in October.

Traders were also watching Chinese president Xi Jinping's visit to the US, with US trade representative Jamieson Greer telling CNBC that "a lot more details" on negotiations between Washington and Beijing would be released on Monday. Earlier in the week, Treasury Secretary Scott Bessent said the two countries had agreed to extend their trade truce by two months.

On the macro front, US durable goods orders were broadly flat in August, according to the Census Bureau, holding at $338.6bn after two consecutive monthly increases and defying expectations for a 0.4% decline.

Meanwhile, US consumer sentiment weakened in September, according to the University of Michigan, slipping to a fourmonth low and leaving the index about 15% below its January level, as households reported softer views on both current and yearahead personal finances and growing unease over persistent price pressures. The headline sentiment index fell to 48.1 from 51.7, current conditions eased to 50.9, and expectations dropped to 46.3, marking notable monthly and annual declines across all three measures.

In equity news, Microsoft was a notable riser after the tech giant unveiled an updated Copilot app with new capabilities, including coding and autonomous-agent tools.

Others in the tech sector also gained, including Qualcomm and Dell Technologies, while Akamai Technologies rose after agreeing an $11.6bn cloud-services deal with Anthropic.

People Inc shares surged on reports that MGM Resorts was considering a potential takeover bid for the publishing group, its largest shareholder. The speculation comes just a day after People Inc withdrew its own proposal to buy MGM Resorts.

Dow Jones - Risers

Microsoft Corp. (MSFT) $516.17 4.61%

Caterpillar Inc. (CAT) $821.58 2.03%

Amgen Inc. (AMGN) $414.61 1.80%

Apple Inc. (AAPL) $341.07 1.63%

JP Morgan Chase & Co. (JPM) $343.06 1.33%

Goldman Sachs Group Inc. (GS) $935.45 1.32%

3M Co. (MMM) $169.55 1.21%

American Express Co. (AXP) $308.89 1.06%

Boeing Co. (BA) $198.07 0.65%

Walt Disney Co. (DIS) $106.15 0.56%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $28.02 -1.89%

Salesforce.Com Inc. (CRM) $234.02 -1.76%

International Business Machines Corporation (CDI) (IBM) $225.51 -0.68%

Nike Inc. (NKE) $35.75 -0.67%

Chevron Corp. (CVX) $204.45 -0.58%

Verizon Communications Inc. (VZ) $47.08 -0.51%

Coca-Cola Co. (KO) $87.81 -0.33%

McDonald's Corp. (MCD) $236.50 -0.22%

Intel Corp. (INTC) $123.00 -0.19%

Visa Inc. (V) $367.38 -0.16%

S&P 500 - Risers

Microchip Technology Inc. (MCHP) $78.69 6.86%

Cadence Design Systems Inc. (CDNS) $326.13 5.43%

Paypal Holdings Inc (PYPL) $55.04 5.26%

Perrigo Company plc (PRGO) $15.42 5.04%

Lam Research Corp. (LRCX) $315.21 4.94%

Borg Warner Inc. (BWA) $61.32 4.86%

Applied Materials Inc. (AMAT) $485.00 4.85%

CVS Health Corp (CVS) $89.13 4.80%

Gartner Inc. (IT) $187.90 4.78%

Mohawk Inds Inc. (MHK) $125.16 4.76%

S&P 500 - Fallers

Gen Digital Inc. (GEN) $21.62 -17.37%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Whirlpool Corp. (WHR) $31.71 -3.85%

Devon Energy Corp. (DVN) $47.05 -3.78%

Intuit Inc. (INTU) $275.79 -3.73%

Darden Restaurants Inc. (DRI) $199.75 -3.61%

Paychex Inc. (PAYX) $101.37 -3.53%

Equity Residential (EQR) $63.66 -3.50%

General Mills Inc. (GIS) $33.64 -3.42%

LyondellBasell Industries (LYB) $58.14 -3.39%

Nasdaq 100 - Risers

Microchip Technology Inc. (MCHP) $78.69 6.86%

Cadence Design Systems Inc. (CDNS) $326.13 5.43%

Paypal Holdings Inc (PYPL) $55.04 5.26%

Lam Research Corp. (LRCX) $315.21 4.94%

Applied Materials Inc. (AMAT) $485.00 4.85%

Microsoft Corp. (MSFT) $516.17 4.61%

Illumina Inc. (ILMN) $270.00 4.55%

American Airlines Group (AAL) $13.87 4.29%

Texas Instruments Inc (TXN) $278.07 4.09%

Analog Devices Inc. (ADI) $393.60 3.90%

Nasdaq 100 - Fallers

Gen Digital Inc. (GEN) $21.62 -17.37%

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Check Point Software Technologies Ltd. (CHKP) $131.24 -6.16%

Intuit Inc. (INTU) $275.79 -3.73%

Paychex Inc. (PAYX) $101.37 -3.53%

J.B. Hunt Transport Services Inc. (JBHT) $225.46 -3.24%

DENTSPLY Sirona Inc. (XRAY) $9.40 -2.99%

Charter Communications Inc. (CHTR) $112.91 -2.86%

NetEase Inc. Ads (NTES) $115.41 -2.84%

Biomarin Pharmaceutical Inc. (BMRN) $60.26 -2.63%