U.S. stocks fell on Friday, following Thursday’s advances. Futures of the major benchmark indices were trading lower as Iran blamed Israel for violating the ceasefire with attacks on Lebanon.
Al Jazeera reported that Israel has launched two raids on the towns of Al Shahabiya and Jabal Al Batm in southern Lebanon.
On the other hand, President Donald Trump accused Iran of failing to uphold ceasefire-related expectations tied to oil transit through the Strait of Hormuz. “Iran is doing a very poor job, dishonorable some would say, of allowing Oil to go through the Strait of Hormuz,” Trump said on Truth Social. “That is not the agreement we have.”
Apart from the Middle East tensions, investors will be eyeing March’s consumer price index, scheduled to be released before the opening bell,
The 10-year Treasury bond yielded 4.30%, and the two-year bond was at 3.79%. The CME Group’s FedWatch tool‘s projections show markets pricing a 98.4% likelihood of the Federal Reserve leaving the current interest rates unchanged in its April meeting.
| Index | Performance (+/-) |
| Dow Jones | -0.15% |
| S&P 500 | -0.11% |
| Nasdaq 100 | -0.08% |
| Russell 2000 | -0.23% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Friday. The SPY was down 0.14% at $678.94, while the QQQ declined 0.16% to $609.20.
Stocks In Focus
Taiwan Semiconductor Manufacturing
- Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) rose 1.81% after it posted a 35% surge in first-quarter revenue, amid the rising artificial intelligence (AI) applications.
- Benzinga’s Edge Stock Rankings indicate that TSM maintains a strong price trend in the short, medium, and long terms, with a solid growth score.
Rocket Lab
- Rocket Lab Corp. (NASDAQ:RKLB) was 0.84% higher as it signed an agreement with the Institute for Q-shu Pioneers of Space, Inc. for three additional Electron rocket missions scheduled to launch from New Zealand starting in 2028.
- Benzinga’s Edge Stock Rankings indicate that RKLB maintains a strong trend in the long and medium terms but a weak trend in the short term.
Simulations Plus
- Simulations Plus Inc. (NASDAQ:SLP) jumped 13.24% after reporting better-than-expected second-quarter financial results, but slashing its FY2026 adjusted EPS guidance.
- Benzinga’s Edge Stock Rankings indicate that SLP maintains a weak price trend in the long and medium terms but a strong trend in the short term, with a poor quality score.
urban-gro
- urban-gro Inc. (NASDAQ:UGRO) surged 12.31% after it outlined on Monday a vertically integrated strategy targeting the global T20 cricket market, following its combination with Flash Sports & Media Inc. and Innovative Production Group Inc.
- Benzinga’s Edge Stock Rankings indicate that UGRO maintains a strong price trend over the short, medium, and long terms.
Pony AI
- Pony AI Inc. ADR (NASDAQ:PONY) was up 1.49% following the launch of PonyWorld 2.0, a self-improving physical AI engine for autonomous driving.
- Benzinga’s Edge Stock Rankings indicate that PONY maintains a weak price trend in the short, medium, and long terms.
Cues From Last Session
Communication services, industrials, and consumer discretionary stocks recorded the biggest gains on Thursday, leading most sectors on the S&P 500 to close on a positive note. However, energy and health care stocks bucked the overall market trend, ending the session lower.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.58% | 48.185,80 |
| S&P 500 | 0.62% | 6.824,66 |
| Nasdaq Composite | 0.83% | 22.822,42 |
| Russell 2000 | 0.60% | 2.636,31 |
Insights From Analysts
Scott Wren, Senior Global Market Strategist at Wells Fargo, remains broadly optimistic about the U.S. stock market despite recent early-year volatility and global conflicts.
He expects 2026 to be a year “where earnings and the S&P 500 Index climb once again to record highs while longer-term bond yields rise modestly.”
However, the economic outlook faces distinct headwinds from the ongoing Iran war, which has triggered a 36% spike in gasoline prices. This energy shock negatively impacts consumer spending, leading Wren to lower his domestic growth forecast to 2.6%.
Furthermore, he anticipates that higher inflation will negate any potential interest-rate reductions, predicting the Federal Reserve will be “standing pat in 2026.”
To offset these challenges, he points to several supportive factors, specifically highlighting “strong artificial intelligence-related capital expenditures, tax rebates coming to consumers this spring as they file their returns, and substantial accumulated deregulation.”
Finally, regarding sector allocations, Wren recently upgraded Information Technology to favorable because it “offers an attractive entry point,” while simultaneously downgrading the Energy sector after it appeared to outrun its fundamentals.
Upcoming Economic Data
Here’s what investors will be keeping an eye on this Friday.
- March’s consumer price index and core CPI data will be out by 8:30 a.m. ET.
- February’s factory orders data, and April’s preliminary consumer sentiment data will be out by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 2.31% to hover around $100.13 per barrel.
Gold Spot US Dollar fell 0.69% to hover around $4,732.84 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.10% higher at the 98.9200 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.40% higher at $71,507.33 per coin, as per the last 24 hours.
Asian markets closed higher on Friday, except Australia’s ASX 200 index. Hong Kong’s Hang Seng, China’s CSI 300, India’s Nifty 50, South Korea’s Kospi, and Japan’s Nikkei 225 indices rose. European markets were also higher in early trade.
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