The major averages finished a volatile week little changed as a sharp rise in oil prices and shifting expectations for monetary policy offset strength in semiconductor stocks and a midweek rebound. The S&P 500 gained 0.1% and the Nasdaq Composite rose 0.4%, while the DJIA slipped 0.3%. The Russell 2000 (+0.1%) and S&P Mid Cap 400 (+0.2%) also finished near their flatlines.
Oil was one of the week's most important influences. WTI crude surged roughly 10% as renewed hostilities between the U.S. and Iran and concerns surrounding the Strait of Hormuz pushed prices above $90 per barrel. The move pressured equities during the first two sessions of the week and helped the energy sector gain 2.3%, making it the strongest-performing S&P 500 sector.
Stocks began recovering Wednesday as oil prices and Treasury yields stabilized, and the rebound accelerated Thursday as easing yields and comments from Fed Governor Christopher Waller reduced some concern surrounding a September rate hike. Those gains were broad enough to erase most of the early-week losses, although Friday's stronger-than-expected Employment Report shifted rate expectations back in a more hawkish direction and interrupted the rebound. The 10-year note yield ultimately rose six basis points for the week to 4.78%.
Technology provided another important source of support, although performance within the sector was sharply divided. The information technology sector gained 1.1%. NVIDIA, Dell, and other AI-related names contributed to semiconductor strength throughout the week. Software stocks moved decisively in the opposite direction, however.
Outside technology and energy, performance was considerably weaker. The consumer discretionary sector fell 2.1%, while materials (-1.6%), real estate (-1.3%), and industrials (-1.1%) sectors also posted sizable losses. The financials sector finished unchanged.
Overall, the market showed little net movement despite substantial volatility beneath the surface. Rising oil prices and Treasury yields pressured stocks early in the week before greater stability in both helped fuel a broad rebound, while Friday's employment data renewed concerns about another Fed rate hike. Strength in semiconductor and energy stocks ultimately helped offset weakness across software and several economically sensitive areas, leaving the major averages close to where they began the week.
Nasdaq Composite: +0.4% week-to-date
S&P Mid Cap 400: +0.2% week-to-date
Russell 2000: +0.1% week-to-date
S&P 500: +0.1% week-to-date
DJIA: -0.3% week-to-date