SynopsisS&P 500 ended almost flat as Microsoft declined, while Meta Platforms recorded gains amid ongoing market fluctuations. Oil prices surged following geopolitical tensions and a missile attack on Saudi Arabia, raising supply concerns.

Treasury yields also increased, with the 30-year bond yield reaching its highest level since 2004. Traders anticipate a significant chance of another Federal Reserve interest rate hike based on recent business activity data.

comThe S&P 500 ended nearly flat on Thursday as a decline in Microsoft offset gains in Meta Platforms, while uncertainty over the Middle East pushed oil prices and Treasury yields higher, Reuters reported. The S&P 500 and Nasdaq recovered from their session lows after Reuters reported that US and Iranian negotiators were exploring a phased path to ending the war.

The proposed plan would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran. US and Iranian leaders traded barbs this week at the UN General Assembly.

“This just reinforces the view that we’re dealing with one major market catalyst right now,” Bill Northey, senior investment director at US Bank Wealth Management, told Reuters. “It’s really all about oil and inflation and the effect on interest rates, and then the interest rate cascading across the capital markets.”

Major AI stocks were mixed. 4%, a day after the social media company unveiled a small handheld device designed for use with its recently launched AI assistant.

1% after a report said the company had issued a “force majeure” notice concerning a New Mexico data center. Treasury yields climbed, with the 30-year bond yield reaching its highest level since 2004.

79. 18.

The S&P 500 has traded just below 19 times expected earnings this week, its lowest valuation since 2023, according to LSEG data. AI-related heavyweights have accounted for much of the recent increase in earnings expectations.

US President Donald Trump welcomed Chinese President Xi Jinping to the White House for a summit expected to be rich in symbolism but offer limited substance on issues including AI, trade, Taiwan and the Middle East war. Data released on Wednesday pointing to strong business activity strengthened expectations that the Federal Reserve could raise interest rates again after last week’s 25-basis-point increase.