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Wall Street closed higher on Friday as investors shifted their attention toward third-quarter earnings and inflation reports that could influence the Federal Reserve's next policy decision. The S&P 500, Nasdaq Composite and Dow Jones Industrial Average all advanced, securing weekly gains. Meanwhile, uncertainty surrounding the Iran war continued to affect oil prices and market sentiment.
According to preliminary figures, the S&P 500 gained 46.35 points, or 0.60%, to 7,811.71. The Nasdaq Composite climbed 172.83 points, or 0.64%, to 27,365.00. Meanwhile, the Dow rose 429.90 points, or 0.84%, to 51,661.54. However, the Russell 2000 small-cap index finished the week below its previous Friday close.
Investors tracked changing developments in the Middle East throughout Friday's trading session. Ross Mayfield, an investment strategy analyst at Baird, linked the restrained market advance to conflicting reports concerning Iran.
President Donald Trump said the United States would not attack Iran before the November 3 midterm elections. He also described negotiations between Washington and Tehran as productive.
Following those remarks, crude oil prices initially declined before reversing direction. Front-month West Texas Intermediate crude and Brent crude both finished 0.4% higher.
Meanwhile, longer-term U.S. Treasury yields edged upward. Nevertheless, the benchmark 10-year yield remained below Wednesday's 24-year peak.
Investors now face a busy week of corporate earnings announcements and inflation reports. Both developments could provide new information about economic conditions and the Federal Reserve's next interest-rate decision.
Six major U.S. banks will release quarterly results, including JPMorgan Chase, Wells Fargo, Citigroup, Goldman Sachs, Bank of America and Morgan Stanley. Their announcements will mark the broader start of third-quarter earnings season.
According to LSEG estimates, analysts expect S&P 500 companies to report combined annual earnings growth of 30.6% for July through September. Energy companies could record 123% growth, while technology firms could achieve 66.5%.
At the same time, recent consumer sentiment figures point to growing economic concerns. The University of Michigan reported weaker consumer confidence in October, with near-term expectations reaching an all-time low.
American consumers account for approximately 70% of U.S. economic activity. Therefore, changes in their expectations remain relevant as investors assess upcoming financial results and inflation figures.
Read More: US Stock Market: Wall Street Edges Higher as S&P 500 Hovers Near Record, Yields Slip
Artificial intelligence-related stocks generally advanced on Friday as the technology-driven U.S. bull market approached its fourth anniversary.
Michael Monaghan, a portfolio manager at Founder ETFs, identified semiconductor stocks as a major market theme this year. He also described the technological transformation as a long-term development still in its early stages.
Meanwhile, shares of T-Mobile US, AT&T and Verizon fell sharply after SpaceX agreed to acquire a nationwide portfolio of low-band wireless spectrum. The transaction positioned Elon Musk's company as a direct competitor to established wireless providers.
Elsewhere, health insurer Humana surged after U.S. government figures showed that 95% of its members belonged to Medicare Advantage plans carrying at least four stars for 2027.
Apple shares declined following a media report that the company had asked suppliers to reduce component production for its iPhone 18 Pro models. The report linked weaker consumer demand to rising memory chip costs and higher handset prices. Delta Air Lines also retreated after the airline lowered its annual profit forecast.
Wall Street closed Friday with gains across the Dow, S&P 500 and Nasdaq, even as oil and Treasury markets reacted to developments involving Iran. Investors now face major bank earnings and inflation reports, while weaker consumer sentiment and mixed company updates provide further context for the coming week.
