New York
Stocks on Wall Street drifted mostly lower while oil prices eased as investors awaited planned U.S.-Iran talks aimed at stabilising tensions following a fragile ceasefire.
The S&P 500 slipped 0.1% amid choppy trading, while the Dow Jones Industrial Average fell 0.6%. The Nasdaq Composite rose 0.4%, supported by gains in major technology stocks. Despite the mixed session, all three indexes posted weekly gains for a second straight week.
Oil markets remained highly sensitive to geopolitical developments. Brent crude, the global benchmark, fell 0.8% to $95.20 per barrel, while U.S. West Texas Intermediate dropped 1.3% to $96.57. Prices have swung sharply since the conflict began, at one point surging above $119 per barrel from around $70 earlier.
The market focus is now on weekend diplomatic talks between U.S. and Iranian officials in Pakistan, though uncertainty remains over whether negotiations will proceed smoothly. Earlier disruptions in shipping through the Strait of Hormuz have already contributed to supply concerns and price volatility.
Rising energy costs have begun feeding into broader inflation trends, with recent data showing a sharp increase in consumer prices. Economists warn that persistent oil shocks could prolong inflationary pressure in the coming months.
Investors are also closely watching the Federal Reserve, which is expected to maintain a cautious stance on interest rates amid concerns that inflation remains above its 2 per cent target. Higher yields and weaker consumer sentiment have added to market caution, even as technology stocks continue to provide some support.