Overview
- U.S. equities finished higher on Friday, sending the Dow to a record closing high and extending the S&P 500’s winning streak to eight weeks.
- Treasury yields softened, with the 10-year around 4.56%, which helped support stock futures and reduced near-term pressure on borrowing costs.
- Negotiations between U.S. and Iranian officials showed limited progress on Friday with mediators from Pakistan and Qatar active, but major gaps remain over Iran’s enriched uranium and proposals for control or tolling of the Strait of Hormuz.
- Oil prices swung sharply this week as headlines about Iran’s uranium policy and strait control pushed crude higher then lower, keeping inflation expectations elevated and weighing on consumer mood.
- The University of Michigan’s consumer sentiment index fell to a record low of 44.8, and energy disruption estimates from agencies and banks show large draws on inventories if shipping through the strait stays constrained.