Equities Rise as Crude Slips on Prospects of US‑Iran Diplomatic Deal
<p>The S&P 500 Index (SPX) (SPY) rose 0.51% on Friday, the Dow Jones Industrial Average (DJIA) (DIA) gained 0.93%, and the Nasdaq 100 Index (IXIC) (QQQ) advanced 0.42%. December E‑mini S&P futures (ESZ26) increased 0.47%, and December E‑mini Nasdaq futures (NQZ26) rose 0.39%.</p>
<p>Equity markets closed higher Friday as crude oil prices fell. WTI crude slipped more than 2% after optimism grew that diplomatic efforts could resolve the U.S.–Iran dispute, potentially reopening the Strait of Hormuz. Strong performance by chipmakers and AI‑related stocks also supported the market amid broader optimism about AI demand and infrastructure.</p>
<p>U.S. economic data exceeded expectations, bolstering equities. August non‑defense ex‑aircraft capital goods orders, a proxy for capital spending, rose 1.6% month‑over‑month, surpassing the forecast of 0.6%. The July figure was revised upward to 0.6% from a prior unchanged reading. The University of Michigan’s September consumer sentiment index was unexpectedly revised up 0.3 points to 48.1, above the consensus expectation of a decline to 47.5.</p>
<p>Equity gains were tempered as the 10‑year Treasury yield climbed to a 19‑year high of 5.23%, reflecting concerns that the Federal Reserve may continue raising rates. New York Fed President John Williams noted that the Fed must bring inflation back to target and cannot ignore persistent supply‑side price shocks.</p>
<p>November WTI crude oil prices fell over 2% after Iran announced a seven‑day proposal to end the conflict and reopen the Strait of Hormuz. Under the plan, hostilities would cease for seven days—including in Lebanon—and the United States would release Iran’s frozen assets (approximately $12 billion), waive sanctions on Iranian oil, and lift the naval blockade. On the final day, the Strait of Hormuz would reopen, and Iran’s foreign minister, Abbas Araghchi, said that comprehensive negotiations on Iran’s nuclear program would commence immediately afterward.</p>
<p>Futures markets price in a 64% probability of a 25‑basis‑point Federal Reserve rate hike at the upcoming FOMC meeting on October 27‑28.</p>
<p>International markets also posted gains on Friday. The Euro Stoxx 50 rose 0.48%. China’s Shanghai Composite was inactive, as the market was closed for the Mid‑Autumn Festival holiday. Japan’s Nikkei‑225 climbed to a 2.5‑week high, gaining 1.30%.</p>
<p><strong>Interest Rates</strong></p>
<p>December 10‑year Treasury notes (ZNZ6) were unchanged on Friday. The 10‑year yield slipped 1.2 basis points to 5.165% after WTI crude oil dropped more than 2%, easing inflation expectations and prompting short covering. Yields had risen earlier in the session to a 19‑year high of 5.225% following hawkish comments from New York Fed President John Williams, who emphasized the need to bring inflation back to target. Better‑than‑expected U.S. economic data, including the August non‑defense ex‑aircraft capital goods orders and the September consumer sentiment index, also put downward pressure on prices.</p>
<p>European government bond yields were mixed. The 10‑year German bund yield rose to a 17‑year high of 3.632% and settled at 3.601%, up 0.2 basis points. The 10‑year UK gilt yield fell from a 1.5‑week high of 5.408% to 5.366%, down 1.5 basis points.</p>
<p>The German October GfK consumer confidence index fell 3.8 points to a five‑month low of -30.6, missing expectations of -27.2.</p>
<p>Markets assign a 42% probability of a 25‑basis‑point ECB rate hike at the October 29 meeting.</p>
<p><strong>US Stock Movers</strong></p>
<p>Shares of semiconductor and AI‑related companies rallied on Friday, lifting the broader market. The iShares Semiconductor ETF (SOXX) rose more than 1%. Microchip Technology (MCHP) gained over 5%, leading the Nasdaq‑100, while ON Semiconductor (ON) also advanced more than 5%. NXP Semiconductors (NXPI) and Qualcomm (QCOM) each rose more than 3%, and Analog Devices (ADI), Applied Materials (AMAT), Lam Research (LRCX), and Texas Instruments (TXN) each added more than 2%. ARM Holdings (ARM), SanDisk (SNDK), ASML (ASML), Western Digital (WDC), Marvell Technology (MRVL), and Seagate (STX) all posted gains of more than 1%.</p>
<p>Cybersecurity stocks declined on Friday, with Zscaler (ZS) dropping more than 10% after announcing that Ross Tackett would assume the role of chief revenue officer effective October 1. Gen Digital (GEN) fell more than 6%, leading the S&P 500’s declines, while SentinelOne (S) also slipped more than 6%. Okta (OKTA) dropped over 5%, and Palo Alto Networks (PANW) fell more than 3%, marking the biggest declines among Nasdaq‑100 components. Fortinet (FTNT), CrowdStrike (CRWD), and Cloudflare (NET) each declined by more than 2%.</p>
<p>Atlas Energy Solutions (AESI) rose more than 13% following its announcement of a $340.5 million purchase agreement with Wyoming Machinery Company for balance‑of‑plant equipment for a power generation project.</p>
<p>People Inc. (PPLI) gained more than 11% after reports that MGM Resorts International is considering a bid for the company.</p>
<p>Humana (HUM) rose more than 4% after Barclays upgraded the stock to overweight from equal weight, setting a price target of $515.</p>
<p>Kami Technologies (AKAM) advanced more than 3% after agreeing to a seven‑year, $11.6 billion contract to supply computing services to Anthropic.</p>
<p>Twilio (TWLO) fell more than 7% after HSBC downgraded the stock and reduced its price target to $211.</p>
<p>Otis Worldwide (OTIS) slipped more than 1% following Wells Fargo’s initiation of coverage with an underweight recommendation.</p>
<p>Comcast Corp (CMCSA) declined 1% after KeyBanc Capital Markets downgraded the stock to underweight with a price target of $18.</p>
<p><strong>Earnings Reports (9/28/2026)</strong></p>
<p>Earnings reports were filed on September 28, 2026, by IDT Corp (IDT), Jefferies Financial Group Inc (JEF), Liberty Live Holdings Inc (LLYVA), ReposiTrak Inc (TRAK), SR Bancorp Inc (SRBK), and Vail Resorts Inc (MTN).</p>
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<p><a href="https://www.nasdaq.com/articles/stocks-settle-higher-crude-prices-fall-us-iran-deal-hopes">Source link </a></p>
