Stock Market Today: Oil Slides But Wall Street Breathes as Dow, S&P Rally – Vanguard S&P 500 ETF (ARCA:VO

U.S. stocks rose at midday Friday in a broad-based rally, with the Dow up around 0.5% and the S&P 500 gaining 0.4%, as a roughly 4% slide in oil prices cooled the inflation and rate-hike anxieties that had gripped markets all week.

The Wall Street Journal reported that Bahrain and Kuwait warplanes had struck sites inside Iran, and Iranian commanders issued fresh threats, even as Pakistan and Iran were said to be exploring a China-brokered path back to talks with Washington.

That was enough to spark a broad relief rally, although momentum began to fade into midday trading as uncertainty lingered and next week’s Federal Reserve decision loomed.

Crude tumbled as the war premium deflated. West Texas Intermediate fell about 4.3% to near $88.25 a barrel, while Brent slid roughly 5% to around $95.65.

Energy Price Easing Ripples Into Rates

The yield on the 10-year Treasury note edged down about 4 basis points to 4.67%, pausing a four-session rally that had lifted the benchmark to its highest level since January 2025.

The 2-year yield slipped to 4.32%, and the 30-year eased to 5.15%.

The Nasdaq 100 fell 0.4% to 28,341, pressured by chip weakness and concerns over AI overspending among hyperscalers.

Rate-hike jitters nonetheless remained a backdrop. Ahead of next Wednesday’s Federal Reserve meeting, markets were pricing roughly a 35% probability of a rate hike, with the odds of a September hike near 80%.

Flash S&P Global PMIs showed U.S. services activity accelerating to an eight-month high while price pressures intensified.

Gold was up about 0.5%, while silver climbed a firmer 2.2%.

Friday’s Performance In Major US Indices