US-Iran Talks Drive Oil Down, Stocks Mixed

The market's choppy session occurred before high-level talks between Iran and U.S. negotiators scheduled for Saturday in Pakistan, following a shaky ceasefire agreement. Oil prices, which previously surged from roughly $70 to over $119 per barrel due to stalled shipping through the vital Strait of Hormuz, saw Brent crude for June delivery fall 0.8% to $95.20 per barrel, and U.S. crude for May delivery dropped 1.3% to $96.57.

The conflict is directly linked to surging U.S. inflation in March, marking the biggest spike in four years, with prices at the gas pump jumping. This inflation increase, just shy of economists' expectations, pushed the 10-year Treasury yield to 4.32% from 4.29%.

Jamie Cox, managing partner for Harris Financial Group, warns that April's inflation effects are likely to be worse than March's. Consumer sentiment slumped 10.7% in April, according to the University of Michigan survey, with year-ahead inflation expectations surging to 4.8% from 3.8%.

The Federal Reserve maintains inflation remains above its 2% target, signaling continued steady interest rates or even potential rate hikes if inflation does not cool. Most S&P 500 companies lost ground, with Eli Lilly and Co.

falling 1.6% and Charles Schwab closing 2.5% lower, while technology stocks like Nvidia (up 2.6%) and Broadcom (up 4.7%) helped offset broader declines.