Wall Street ends mixed as investors watch Middle East talks; weekly gains hold ahead of earnings

U.S. stocks finished Friday on a split note as investors headed into the weekend balancing Middle East peace negotiations with persistent inflation pressures from energy. The Dow Jones Industrial Average and the S&P 500 ended lower, while tech strength lifted the Nasdaq.

Despite the cautious tone, all three major indexes recorded weekly gains ahead of the next wave of corporate results. A closely watched inflation reading showed consumer price growth accelerated as expected, with energy costs a notable driver. The pickup in price pressures kept traders on edge, even as negotiations in the region continued to shape risk sentiment.

World Bank President Ajay Banga warned the Middle East conflict could weigh on global growth and prices even if a fragile ceasefire holds. He said global growth could be reduced by 0.3 to 0.4 percentage points in a base case and by as much as 1 point if fighting escalates, while inflation could rise by 200 to 300 basis points.

Banga noted oil prices have already surged about 50% amid supply disruptions and cautioned that risks would increase if tensions persist or critical routes such as the Strait of Hormuz are affected. In energy sector data, Baker Hughes reported a mixed weekly rig count across major U.S.

basins for the period ended April 10. The Permian Basin was unchanged from a week earlier, Eagle Ford declined by two rigs and the Williston Basin fell by one. The Niobrara, Haynesville and Utica basins were unchanged, pointing to broadly steady drilling activity despite regional fluctuations.

Deal chatter and corporate moves also colored the session. Rio Tinto has drawn interest from more than a dozen potential bidders for its U.S. boron assets and could fetch around $2 billion, Bloomberg News reported, citing sources. Separately, hedge fund manager Bill Ackman said his first call before launching a $64 billion bid for Universal Music Group this week was to French billionaire Vincent Bolloré.

Ackman told investors the response from Universal’s largest shareholder was “music to my ears,” adding that Bolloré’s camp was “intrigued” by the proposal. “Without Bolloré, we don’t have a transaction,” said Ackman, noting Bolloré directly and indirectly controls just below 32% of the company.

With earnings season set to accelerate, investors will look to corporate guidance for clues on whether resilient demand can offset higher input costs and geopolitical uncertainty. Market direction in the near term is expected to hinge on how companies frame the outlook alongside evolving inflation and energy dynamics.