WASHINGTON (dpa-AFX) - Following the sell-off seen during Thursday's session, stocks saw considerable volatility over the course of the trading session. The major averages showed a notable move to the upside in morning trading before coming under considerable pressure in the afternoon.
The major averages eventually ended the day mixed. While the Nasdaq slid 161.87 points or 0.6 percent to 24,975.82, the S&P 500 inched up 3.68 points or 0.1 percent to 7,411.98 and the Dow climbed 235.60 points or 0.5 percent to 51,947.25.
The tech-heavy Nasdaq tumbled by 2.1 percent for the week, closing below 25,000 for the first time since late April. The S&P 500 and Dow posted more modest weekly losses, falling by 0.6 percent and 0.4 percent, respectively.
The strength that emerged on Wall Street in morning trading came amid a sharp pullback by the price of crude oil, with U.S. crude oil futures tumbling by more than 2 percent after soaring by more than 6 percent on Thursday.
The steep drop by the price of crude oil partly came in reaction to a report from Reuters indicating Pakistan is exploring a path towards a resumption of stalled U.S.-Iran talks over ending the conflict.
Crude oil prices remain well off the lows seen earlier this month, however, as the U.S. and Iran continue to exchange attacks.
After the United States launched its 13th consecutive night of strikes on Iranian targets, Tehran retaliated with missile attacks targeting neighboring Arab countries hosting U.S. military bases.
The subsequent pullback by stocks in afternoon trading may have reflected renewed tariff concerns after President Donald Trump threatened to impose substantial tariffs on the European Union over the substantial fines the bloc has levied against major U.S. tech companies.
The Trump administration previously announced is imposing tariffs on 60 economies for their failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.
The tariffs, ranging from 10 percent to 12.5 percent, would impact major economies like the European Union, the U.K., China, India, Japan and Canada. The measures replace a temporary 10 percent global tariff that expires today.
Sector News
Semiconductor stocks showed a substantial move to the downside on the day, resulting in a 4.3 percent nosedive by the Philadelphia Semiconductor Index.
Intel (INTC) led the sector lower, with the chipmaker plunging by 7.9 percent despite reporting second quarter results that exceeded estimates and providing upbeat third quarter guidance.
Computer hardware and networking stocks also came under pressure, contributing to the extended slump by the tech-heavy Nasdaq.
On the other hand, airline stocks surged amid the sharp pullback by crude oil prices, driving the NYSE Arca Airline Index up by 3.2 percent.
Oil service stocks also turned in a strong performance despite the steep drop by crude oil prices, as reflected by the 2.9 percent surge by the Philadelphia Oil Service Index.
SLB (SLB) helped lead the sector higher, spiking by 11 percent after reporting better than expected second quarter results.
Commercial real estate and housing stocks also saw considerable strength as a pullback by treasury yields eased recent interest rate concerns.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved notably lower during trading on Friday. Japan's Nikkei 225 Index plunged by 2.7 percent, while China's Shanghai Composite Index tumbled by 1.6 percent.
Meanwhile, the major European markets showed strong moves to the upside on the day. While the German DAX Index jumped by 1.4 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both advanced by 0.9 percent.
In the bond market, treasuries regained ground after seeing significant weakness over the past several sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.4 basis points to 4.679 percent.
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