Oil Price Slump Temporarily Boosts Wall Street Amid Ongoing Iran War Pressure

Wall Street showed some signs of life on Friday as oil prices slipped for the first time in a week, but stocks are still headed for their second consecutive weekly loss. The S&P 500 rose 0.5% while the Dow Jones Industrial Average increased by 351 points or 0.7%. Brent crude oil fell 5.1% to $95.55 per barrel, moving back below the $100 mark after reaching it on Thursday.

The escalation of the US war with Iran has been putting pressure on Wall Street all week. The conflict threatens to slow down global oil and gas supplies, and many energy market buffers have been weakened since it began in February. This includes a decline in Chinese demand for oil and commercial and strategic reserves that cushioned markets earlier this year.

Investors are worried about the impact of rising energy costs on household budgets and companies' profits. Micron Technology fell 4.9% while Broadcom dropped 2.1%. Both companies have significant market values, which weighed heavily on the Nasdaq index. The tech-heavy index rose only 0.1% but was kept in check by these losses.

The Federal Reserve is set to meet later this month and has been monitoring inflation closely. Rising energy costs could result in hotter inflation, which would dash hopes for an interest rate cut earlier in the year. Wall Street now leans towards a potential rate increase to help cool inflation. There's nearly a 36% chance of a rate hike at the upcoming meeting next week, according to CME FedWatch.