Stocks commenced trading on a positive note Friday, buoyed by a decline in oil prices. However, the principal indexes appeared set to conclude the week predominantly in the red, given that crude futures continued to hold at elevated levels. The blue-chip Dow Jones Industrial Average, benchmark S&P 500, and tech-heavy Nasdaq commenced trading with increases of 0.7%, 0.4%, and 0.2%, respectively. Yesterday, the major indexes experienced declines of at least 1.5%, with the Dow losing 739 points, as oil prices surged in response to escalating concerns regarding supply disruptions. The Dow concluded Friday with a decline of 1.7% for the week, whereas the S&P 500 experienced a decrease of 1% and the Nasdaq was down 0.3%, following a downturn in all three indices over the preceding two weeks. West Texas Intermediate crude futures, the U.S. oil-price benchmark, experienced a decline of nearly 2% to $94 a barrel, yet they continue to trade significantly above the approximate $67-a-barrel level observed prior to the U.S. and Israel’s military actions against Iran on February 28.

Brent crude, the global benchmark, experienced a decline of over 1%, trading at $99 a barrel following its closure above $100 a barrel for the first time since August 2022 yesterday. In an effort to stabilize prices, Treasury Secretary Scott Bessent announced on Thursday that the United States would permit countries to purchase Russian oil that is currently at sea on a temporary basis. The International Energy Agency announced its intention to release a historic 400 million barrels of strategic reserves to stabilize prices in response to what it described as “the largest supply disruption in the history of the global oil market.” Investors processed the postponed publication of the January Personal Consumption Expenditures index. The Federal Reserve’s favored measure of inflation revealed a year-over-year increase of 2.8% in January, falling short of economists’ forecasts of a 2.9% rise. Month-over-month, inflation rose by 0.3%, a decrease from December’s 0.4%, aligning with expectations. Core inflation increased to 3.1% on a year-over-year basis and held steady at 0.4% month-over-month, aligning with forecasts.

Meanwhile, fourth-quarter U.S. GDP was revised down to 0.7% growth, which is half of its previous reading. The Federal Reserve convenes next week and is anticipated to maintain the current interest rate levels. The yield on the 10-year Treasury note, a key determinant of interest rates across various consumer loans, stood at 4.25%, reflecting a slight decrease from prior levels and Thursday’s closing figure of approximately 4.27%—the highest closing rate observed since February 4. Gold futures experienced a slight decrease, settling at $5,120 per ounce, while silver futures saw a nearly 1% drop, hovering around $84 per ounce. The U.S. Dollar Index, which monitors the value of the greenback relative to a selection of currencies, increased by 0.3% to 100.03. Bitcoin was trading at approximately 73,200, reflecting an increase from the overnight lows near 70,000.

In the aftermath of earnings announcements, shares of Adobe experienced a decline of 6.5% at the opening bell following the news that CEO Shantanu Narayen intends to resign after 18 years in the role. Meanwhile, Ulta Beauty saw its stock drop by 8% due to weaker-than-expected full-year profit and comparable sales projections. Shares of the Magnificent Seven tech giants exhibited a mixed performance, with Meta Platforms leading the declines at 3%. All concluded at a lower level yesterday. CF Industries, Mosaic, and Nutrien shares exhibited a mixed performance following a surge earlier this month, as fertilizer producers are poised to gain from supply disruptions resulting from halted transit through the Strait of Hormuz.