U.S. Stocks were mixed on Friday as investors digested a steep rise in March inflation and fresh uncertainty around global energy markets. The Nasdaq Composite edged higher by about 0.2%, supported by continued strength in semiconductors and AI-linked names, while the Dow Jones Industrial Average fell roughly 0.6%, dragged lower by financials and energy-sensitive sectors.
The S&P 500 hovered just below the flatline, slipping around 0.1% as the broader market struggled to maintain momentum after a strong multi-day rally. Despite recent gains, major indexes showed signs of hesitation as surging energy prices and geopolitical tensions reintroduced volatility, keeping traders cautious heading into a critical weekend of U.S.-Iran talks.
Market Movers:
- Organon (OGN) +16% – Shares surged following reports that India’s Sun Pharmaceutical Industries submitted a roughly $12 billion acquisition bid, marking a potentially historic cross-border pharma deal. Investors reacted positively to the strategic interest and premium valuation implied in the offer.
- Simulations Plus (SLP) +12% – The stock jumped after posting a solid quarterly earnings beat, with revenue and profit exceeding expectations. Despite a lowered full-year EPS outlook due to tax impacts, strong execution and margins reassured investors.
- CoreWeave (CRWV) +4% – Shares climbed after the company secured a major deal with Anthropic to supply computing power for its AI models. The agreement reinforces CoreWeave’s growing role in the AI infrastructure boom and follows a series of high-profile partnerships.
- Taiwan Semiconductor Manufacturing (TSM) +3% – The chip giant moved higher after reporting strong March revenue growth driven by surging demand for AI-related semiconductors. The update boosted confidence ahead of its full earnings report later this month.
- Tecnoglass (TGLS) -7% – Shares fell after the company warned new U.S. tariffs on aluminum imports would dent profitability. Management outlined mitigation strategies, but investors focused on near-term margin pressure.
- Ares Management (ARES) -3% – The stock slipped amid broader concerns about stress in private credit markets and rising redemption pressures. Reports of a new fundraising effort did little to offset worries about liquidity and asset quality.
Inflation Shock Reignites Market Volatility
March’s inflation report jolted markets, with consumer prices rising 0.9% on the month — the largest increase since 2022. On an annual basis, inflation accelerated to 3.3%, driven overwhelmingly by a surge in energy costs as oil prices spiked בעקבות disruptions tied to the U.S.-Iran conflict. Gasoline prices alone jumped more than 20% in March, accounting for the majority of the increase. The data reinforced fears that inflation could remain stubbornly elevated, complicating the Federal Reserve’s path forward and potentially delaying anticipated rate cuts.
Oil Prices Climb Again as Geopolitical Risks Continue
After a brief collapse earlier in the week, oil prices resumed their climb Friday as doubts resurfaced about the durability of the ceasefire in the Middle East. West Texas Intermediate crude pushed back toward the $100 per barrel level, while Brent crude also advanced. Limited tanker traffic through the Strait of Hormuz continues to constrain supply, keeping a geopolitical risk premium embedded in energy markets. Investors remain highly sensitive to any developments that could further disrupt global oil flows.
Diverging Market Signals: Tech Strength vs. Financial Weakness
Under the surface, market leadership remains fragmented. Semiconductor stocks continue to outperform, with AI-driven demand pushing the sector to fresh highs. In contrast, software names are lagging, reflecting concerns about rising competition and valuation pressure. Meanwhile, financial stocks came under pressure following warnings about risks tied to private credit exposure. Insurance companies and asset managers were among the weakest performers, highlighting growing unease about hidden vulnerabilities in the financial system.
Looking Ahead
Markets are entering a critical stretch, with investors closely watching this weekend’s U.S.-Iran negotiations for signs of a more durable resolution. Any progress toward stabilizing the Strait of Hormuz could ease pressure on oil prices and inflation expectations. At the same time, the sharp rebound in inflation underscores the fragile balance facing policymakers. With energy costs rising and economic signals mixed, the Federal Reserve may remain sidelined longer than markets had hoped — setting the stage for continued volatility in the weeks ahead.