(Updates to 14:47 EDT)
U.S. stocks were mixed on Friday and Treasury yields dipped as investors juggled lackluster earnings, uncertainties surrounding central bank policy and geopolitical strife.
Gold and crude prices advanced as market participants kept an uneasy eye on unfolding turmoil in the Middle East.
The Dow was the lone gainer among the three major U.S. equity indexes, while the Nasdaq, weighed down by megacap tech and tech-related momentum stocks, tumbled 2.3%.
The S&P was on track for its third straight weekly percentage loss, while the Nasdaq appeared to be headed for its fourth consecutive down week.
Mounting tensions in the Middle East appeared to plateau after Tehran downplayed Israel's retaliatory drone strike against Iran, a move that seemed geared toward averting regional escalation of the war.
"The level of concern in the Middle East is higher than it was at any time since Oct 7," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "Maybe now it’s plateauing, but it’s close to the forefront of a lot of peoples’ minds."
While first-quarter reporting season is still in its early stages, expectations have dimmed. Analysts now see aggregate S&P 500 earnings growth of 2.9% year-on-year, down from the 5.1% estimate as of April 1, according to LSEG.
"It’s been a mixed bag as far as earnings go, and people are more prone to selling stocks as they head into a weekend," Tuz added. "Next week is a big tech earnings week and that’s probably prompting some selling; those stocks have done so well until relatively recently and I think some money is flowing out of them just out of concern that earnings and guidance won’t meet expectations."
Chicago Federal Reserve President Austan Goolsbee said on Friday that the Fed's restrictive policy is "appropriate" given economic strength and the slower-than-expected process of bringing inflation down closer to its 2% target.
"Everyone is walking back the notion of rate cuts before mid-year," Tuz added. "We have one or two sets of numbers before June and I would be surprised if the economy softened enough to warrant a June rate cut."
The Dow Jones Industrial Average .DJI rose 108.04 points, or 0.29%, to 37,883.42, the S&P 500 .SPX lost 53.93 points, or 1.08%, to 4,957.19 and the Nasdaq Composite .IXIC dropped 352.22 points, or 2.26%, to 15,249.28.
European shares touched their lowest level in more than a month but closed well off their intraday trough as anxieties over strife in the Middle East eased and solid earnings provided some support.
The pan-European STOXX 600 index .STOXX lost 0.08% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 1.00%.
Emerging market stocks lost 1.33%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.63% lower, while Japan's Nikkei .N225 lost 2.66%.
Treasury yields inched lower as investors favored safe-haven assets due to potential broadening of the Middle East conflict.
Benchmark 10-year notes US10YT=RR last rose 8/32 in price to yield 4.6166%, from 4.647% late on Thursday.
The 30-year bond US30YT=RR last rose 16/32 in price to yield 4.7116%, from 4.745% late on Thursday.
The dollar was last essentially flat as currency markets calmed down after a flight to the Swiss Franc CHF=EBS and the yen JPY=EBS in the wake of Israel's drone attack on Iran.
The dollar index .DXY rose 0.01%, with the euro EUR= up 0.05% to $1.0648.
The Japanese yen strengthened 0.03% versus the greenback at 154.61 per dollar. Sterling GBP= was last trading at $1.2369, down 0.53% on the day.
Crude oil prices dipped earlier as supply concerns eased in the wake of Iran's subdued response, reversed course and settled modestly higher amid lingering uncertainties arising from geopolitical instability.
U.S. crude CLcv1 rose 0.50% to settle at $83.14 per barrel, while Brent LCOcv1 settled at $87.29 per barrel, up 0.21% on the day.
Gold advanced, putting the safe-haven metal on track for its fifth straight weekly gain.
Spot gold XAU= added 0.7% to $2,394.81 an ounce.
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