Stocks Rebound as Tech Shares Recover, Oil Prices Ease on Trump's Iran Stance

U.S. stocks experienced an uptick Friday morning, with technology shares recovering from a previous trading session and oil prices falling after President Trump announced the United States would not strike Iran before the midterm elections.

The Nasdaq Composite index rose 0.3% by approximately 10 a.m. ET. This recovery followed a downturn on Thursday, which was influenced by reports indicating that OpenAI's annualized revenue was $50 billion, falling short of an estimated $68 billion.

Meanwhile, SpaceX's shares climbed 1.6% on Thursday, contributing to the tech sector's advance after securing a significant spectrum license agreement. This development, however, led to a decrease in the stock values of AT&T, Verizon, and T-Mobile.

Brent crude oil futures saw a slight decrease of 0.3%, trading at $103.93 per barrel, while West Texas Intermediate crude fell by 0.5% to $91.43.

President Trump stated in a social media post on Thursday that the U.S. "will not be attacking Iran at any time prior to the Midterm Elections." This statement came amid reports that the president was considering a large-scale operation.

The decline in oil prices provided support for the broader market. The Dow Jones Industrial Average increased by 126 points, or 0.3%, and the S&P 500 index also gained 0.3%.

A global bond sell-off continued but appeared to be losing momentum. The U.S. 10-year Treasury yield reached 5.259%, and the U.S. 30-year Treasury yield moved up to 5.622%. Both yields remained lower than multi-decade highs recorded earlier in the week.

Bob Edwards, chief investment officer at Edwards Asset Management, commented that recent market volatility has created favorable buying opportunities for investors. He noted that "higher oil prices, geopolitical conflict, rising yields, AI investment concerns and November’s midterm elections have contributed to investor pessimism." Edwards added, "Yet technology stocks have demonstrated resilience, earnings expectations remain robust, and I believe the eventual resolution of election uncertainty could provide another catalyst for equities."

Earlier in the week, Brent crude futures had risen as much as 5%, pushing bond yields higher and stock prices lower. This surge was attributed to Iranian attacks on vessels in the Strait of Hormuz, which disrupted tanker traffic and raised concerns about sustained higher oil and gasoline prices. Additionally, an intensifying hurricane forced production cuts from oil producers off the U.S. Gulf Coast, further constricting supply.

The national average for gasoline prices has remained above $4 per gallon, with diesel prices consistently exceeding $6 per gallon. The latter figure is a particular concern for economists due to the fuel's essential role in heavy trucks that transport goods, potentially leading to increased consumer prices.

President Trump had previously initiated measures to increase U.S. diesel supply, including an executive order to permit wider use of tax-exempt diesel and securing a G7 agreement to release up to 100 million barrels of diesel and crude oil in the coming months. However, experts have cautioned that these actions might have a limited impact on U.S. prices at the pump.