U.S. stocks were mixed on Friday as investors weighed renewed geopolitical tensions in the Middle East against continued strength in the technology sector. The Dow Jones Industrial Average and S&P 500 posted modest gains, while the Nasdaq hovered near the flatline as Wall Street monitored oil prices, Treasury yields, and the debut of AI memory giant SK Hynix on the Nasdaq.
Markets remained cautious after military clashes between the U.S. and Iran intensified once again, disrupting shipping through the Strait of Hormuz and renewing concerns about global energy supplies. While crude prices eased from recent highs during the session, investors continued to assess whether elevated energy costs could complicate the inflation outlook ahead of the Federal Reserve's next policy meeting.
Market Movers:
- WD-40 (WDFC) +23%: Shares soared after the company delivered stronger-than-expected fiscal third-quarter results, with both revenue and adjusted earnings topping Wall Street estimates. Management also issued upbeat fiscal 2026 guidance and said pricing actions alongside cost-saving initiatives should provide a more meaningful earnings boost beginning in fiscal 2027.
- Vodafone (VOD) +13%: Shares jumped after UAE telecom operator e& Group agreed to sell its 16.21% stake in Vodafone to a company controlled by French billionaire Xavier Niel's family. The transaction removes a major strategic shareholder while generating approximately $1.3 billion in net proceeds for e&, ending its board representation at Vodafone.
- Meta Platforms (META) +6%: Shares climbed after a SemiAnalysis report suggested Meta's aggressive AI infrastructure investments could allow it to surpass Google in AI capabilities within six months. The report also argued Meta could eventually exceed both OpenAI and Anthropic in total AI computing capacity, reinforcing optimism surrounding the company's long-term AI strategy.
- Solaris Energy Infrastructure (SEI) +4%: Shares advanced after S&P Dow Jones Indices announced the company will join the S&P SmallCap 600 Index before trading begins on July 15. The addition follows Angelini Pharma's pending acquisition of Catalyst Pharmaceuticals, creating new index demand for Solaris shares.
- Fermi (FRMI) -18%: Shares tumbled after the company priced an upsized $375 million offering of 5.00% convertible senior notes due 2031. While the conversion price represented a premium to the current share price, investors reacted negatively to the additional financing and potential future dilution.
- Delta Air Lines (DAL) -3%: Shares slipped despite reporting second-quarter revenue and earnings that exceeded analyst expectations and reinstating full-year guidance. Investors instead focused on the sharp rise in fuel costs, which pressured the broader airline sector even as travel demand remained strong.
Middle East Tensions Keep Markets Focused on Energy
Geopolitical developments remained one of the market's primary drivers as renewed conflict between the U.S. and Iran continued to threaten global shipping through the Strait of Hormuz. Although oil prices pulled back modestly during Friday's session, crude remained elevated compared to levels seen before the latest escalation.
Investors continue to view energy prices as one of the biggest variables for inflation heading into the second half of the year. Any prolonged disruption to oil exports or shipping routes could complicate the Federal Reserve's efforts to bring inflation back toward its 2% target.
AI Trade Remains in the Spotlight
Artificial intelligence continued to dominate market sentiment despite broader macroeconomic concerns. SK Hynix's highly anticipated Nasdaq debut drew significant investor attention after becoming the largest foreign listing in U.S. history, underscoring continued demand for companies tied to AI memory and semiconductor infrastructure.
The strong reception for SK Hynix reinforced expectations that AI-related investment remains one of the market's strongest long-term growth themes. Investors are increasingly looking beyond short-term volatility to focus on continued spending by hyperscalers, cloud providers, and enterprise customers building next-generation AI infrastructure.
Fed Outlook Remains Front and Center
Markets also continued to digest the Federal Reserve's latest messaging after the central bank reiterated its commitment to restoring price stability ahead of Chair Kevin Warsh's upcoming congressional testimony. Investors remain divided over whether policymakers will keep rates unchanged for the remainder of the year or eventually resume tightening if inflation remains stubbornly elevated.
With labor market conditions still relatively healthy and energy prices remaining volatile, traders are expected to remain highly sensitive to incoming inflation data and any signals from Fed officials over the coming weeks.
Looking Ahead
Investors will continue monitoring developments in the Middle East as geopolitical tensions and oil prices remain key risks for global markets. At the same time, attention will increasingly shift toward second-quarter earnings season, where technology companies will face growing pressure to demonstrate that heavy AI investments are translating into sustained revenue and profit growth.
The market will also closely watch next week's congressional testimony from Federal Reserve Chair Kevin Warsh for additional clues on monetary policy. With inflation concerns, geopolitical uncertainty, and earnings season all converging, investors are likely to remain focused on both macroeconomic headlines and corporate results as they assess the outlook for the second half of the year.