US Stock Market Steadies As Oil Drops And SpaceX Debuts

US stocks drifted on Friday. Oil prices fell. Investors watched the SpaceX debut.

Key index moves as of 9:35 am Eastern time:

  • The S&P 500 rose 0.1%
  • The Dow Jones Industrial Average gained 270 points, or 0.5%
  • The Nasdaq Composite fell 0.1%

SpaceX is the first of three large AI-linked companies expected to trade on US markets. The debut tests whether investors will keep backing AI stocks after sharp swings and rising doubts.

Brent crude oil prices dropped 2.2% to $88.36 a barrel. The decline extended weekly losses. Oil fell after President Donald Trump withdrew threats to strike Iran on Thursday. He suggested a deal with Tehran is near.

An agreement would reopen the Strait of Hormuz. Oil tankers would resume shipments from the Persian Gulf. War disruption had pushed Brent crude from about $70 a barrel. The increase added to global inflation.

Markets have rallied before on hopes of an Iran deal. They reversed when those hopes failed.

AI stocks swung sharply this past week. They had surged to record highs earlier. Investors now question whether valuations climbed too far too fast.

Key stock moves on Friday:

  • Micron Technology fell 2%
  • Broadcom slipped 0.8%

Some selling came from investors moving funds ahead of the SpaceX debut and other large AI IPOs.

SpaceX shares are expected to begin trading on the Nasdaq later in the day. Elon Musk's rocket company holds large AI investments. It carried $29.1 billion in debt as of March.

If SpaceX shares hold at the offering price, the company would reach a market value of $1.77 trillion. It would rank alongside Broadcom and Meta Platforms as one of the most valuable companies on Wall Street.

Treasury yields edged higher on Friday. The 10-year Treasury yield rose to 4.48% from 4.45% late Thursday. Higher yields slow economic activity and weigh on asset prices. Some critics say the AI sector shows bubble signs after a long investment surge.

Global stock markets advanced:

  • South Korea's Kospi jumped 4.6%
  • Tokyo's Nikkei 225 rose 2.8%
  • France's CAC 40 gained 1.8%