S&P 500 Rises 0.6% at Midday on Easing Middle East Tensions

Oil prices dropped 4% to $95 per barrel Friday on reports of potential U.S.-Iran peace negotiations brokered by Pakistan and China, lifting the S&P 500 0.6% at midday. The Dow advanced 0.7%, while the Nasdaq lagged with a 0.1% gain as tech earnings concerns offset easing geopolitical risk.

Apple contributed to the rally, though American Express and SK Hynix declined on earnings worries. The divergence between the Dow's strength and Nasdaq's muted response signals investor caution ahead of next week's earnings wave from the remaining Magnificent 7 names, which will reveal how AI infrastructure spending is evolving.

The crude sell-off marks a sharp reversal from recent tension-driven spikes, with diplomatic progress offering near-term relief. But the move underscores how quickly macro positioning can shift on geopolitical developments, particularly in energy markets that have amplified equity volatility this year.