US stock markets finished with mixed results on Friday as traders adopted a cautious approach ahead of the weekend, closely watching progress in Middle East diplomatic efforts. A key inflation measure indicated that consumer prices rose as anticipated, driven by cost increases linked to the conflict involving Iran. The Dow Jones Industrial Average and S&P 500 declined, while technology shares lifted the Nasdaq to a positive close amid evaluations of regional events. The tentative two-week ceasefire faces risks from alleged breaches, including Israel’s ongoing strikes in Lebanon, though Prime Minister Benjamin Netanyahu expressed interest in direct discussions with Beirut. Iran has maintained the closure of the Strait of Hormuz, insisting on a halt to fighting in Lebanon and the release of frozen funds before talks resume. The week started amid tensions, with President Donald Trump issuing strong warnings to Iran, but markets rebounded as a truce appeared possible. All major indices recorded advances over the week. Analysts noted trader reluctance to hold positions over an extended weekend break during US-Iran negotiations, citing potential for rapid shifts in news. Recent patterns show stronger market performance early in the week and weaker closes toward the end. The Labor Department’s consumer price index revealed the biggest monthly increase in almost four years, fueled by a sharp rise in fuel costs, including a 21.2% jump in gasoline prices. The core index, excluding food and energy, came in below expectations. However, the impact of higher oil prices from the Iran conflict is expected to persist. San Francisco Federal Reserve President Mary Daly indicated that the energy price surge would delay efforts to reach the 2% inflation goal. A University of Michigan survey reported consumer confidence hitting a historic low this month, with short-term outlooks at their weakest since May 1980. Preliminary figures showed the S&P 500 dropping 6.76 points, or 0.10%, to 6,817.90. The Nasdaq Composite rose 78.64 points, or 0.35%, to 22,901.06. The Dow fell 282.62 points, or 0.59%, to 47,903.18. Semiconductor companies led gains, reaching new peaks. Banking shares lagged in anticipation of upcoming earnings reports from major institutions, signaling the start of the quarterly results period. Forecasts suggest S&P 500 earnings will grow 13.9% year-over-year. Experts hope corporate results will refocus attention on business performance. Shares of Taiwan Semiconductor Manufacturing, traded in the US, advanced after exceeding revenue projections for the first quarter. CoreWeave shares climbed following news of a long-term deal with Anthropic.
