Stocks Rally on Crude Price Drop, Led by Tech and Crypto Exposed Stocks
Stocks finished mostly higher on Friday as crude prices fell.
The S&P 500 Index SPY closed up by +0.17%, while the Dow Jones Industrial Average DIA slipped -0.18% and the Nasdaq 100 Index QQQ rose +0.67%. December E-mini S&P futures (ESZ26) increased +0.20%, and December E-mini Nasdaq futures (NQZ26) gained +0.70%.
A combination of short covering after crude oil prices gave up an early advance and fell more than -1% on hopes that diplomacy could resume crude flows from the Middle East, as well as strength in chipmakers and AI-infrastructure stocks, along with a rally in cryptocurrency-exposed stocks, supported the broader market.
The 10-year T-note yield rose +6.6 bp to 4.996%, initially weighing on stocks before recovering after WTI crude oil prices fell more than -1%, lowering inflation expectations.