Stocks fell Friday after both the Dow Jones Industrial Average and the broader S&P 500 index hit record intraday highs as investors gauged tensions with Iran, prospects for a resolution of the U.S.-China trade conflict and confidence the Federal Reserve will step in if geopolitical developments turn negative.
However, all major averages ended the week in positive territory -- their third straight consecutive weekly gain. Further, the S&P 500 is headed toward its best June since 1955, according to Dow Jones Market Data.
During Friday's session, both the 30-stock Dow and the S&P 500 index touched all-time intraday highs following Vice President Pence saying he would postpone a hawkish China policy speech that he was to deliver next week because of “positive signs” of progress in trade talks with China.
President Trump and Chinese President Xi had a “productive conversation” this week ahead of their meeting at next week’s G-20 gathering, the WSJ reported, citing sources. The bounce briefly put the Dow on track for a record finish.
However, stocks have been fighting resistance because of rising tensions between the U.S. and Iran as President Trump had approved a military strike in retaliation for the downing of a U.S. surveillance drone -- which the administration said was flying in international airspace -- but called off the attack at the last minute.
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U.S. crude prices were higher by 0.70 percent at $57.47 per 42-gallon barrel.
The yield on the 10-year Treasury edged up to 2.06 percent.
Apple shares got a lift after the company filed to be exempt from the next round of Chinese tariffs. Shares of Intel were also climbing.
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Some chipmakers were under pressure after Britain's IQE Plc warned on full-year revenue, citing the impact of the Huawei ban. That sent shares of Micron Technology and Advanced Micro Devices lower.
In Asian markets on Friday, China's Shanghai Composite added 0.5 percent on the day and gained 4.2 percent for the week. Hong Kong's Hang Seng slipped 0.3 percent but gained 5 percent for the week. Japan's Nikkei fell 1 percent but rose 0.7 percent for the week.
European markets finished the day lower. London's FTSE was lower by 0.2 percent, Germany's DAX was lower by 0.1 percent and France's CAC slipped 0.1 percent.