Category: Business

NEW YORK — Stocks drifted to a mixed finish on Wall Street Friday as oil prices slipped for the first time in a week.

Every major index lost ground overall for the week amid increasing pressure from a sharp escalation in the U.S. war with Iran. Investors are also contending with more tariffs and worries about the economy suffering under the weight of stubborn inflation.

The S&P 500 barely budged in a day of uneventful trading. It rose 3.68 points, or less than 0.1%, to 7,411.98. The index notched its second consecutive losing week, which hasn’t happened since March.

The Dow Jones Industrial Average rose 235.60 points, or 0.5%, to 51,947.25.

The Nasdaq fell 161.87 points, or 0.6%, to 24,975.82. It was weighed down by sharp losses from several Big Tech stocks.

Micron Technology fell 7% and Broadcom fell 2.7%. Both companies have large market values that tend to weigh more heavily on the market. They were big reasons for the technology-heavy Nasdaq lagging the market, and also why the market’s gains were kept in check despite more stocks rising than falling within the S&P 500.

Heavy fighting in the Middle East throughout the week again threatened to slow the global flow of oil and gas. It has been an ongoing concern for Wall Street, and now many of the buffers in the energy market from earlier in the year, including strategic reserves in the U.S., have been weakened.

“If escalation continues and the Strait of Hormuz remains closed, the impact will land on an energy market with far less resilience than in the spring,” wrote Theodore Bunzel, head of geopolitical advisory at Lazard Asset Management, in a report.

Brent crude, the international standard, fell 3.9% to $96.78. It has generally been rising all week and moved back above $100 on Thursday before easing a bit. Before the Iran war began in late February it was trading around $72 per barrel.

Bond yields also eased and relieved some of the pressure on stocks. The yield on the 10-year Treasury fell to 4.68% from 4.71% late Thursday.

Markets in Europe gained ground, while Asian markets closed lower.

The U.S. is also ramping up its global trade war with a fresh round of tariffs on dozens of nations. The new round of tariffs impacts nearly all U.S. imports and they are paid by companies importing those goods, who then typically pass the added costs along to consumers. That move came just as the clock was running out Friday on stopgap levies the president imposed after a stinging defeat for other tariffs at the Supreme Court.

Rising energy prices and fresh tariffs could result in hotter inflation, which has been squeezing consumers and looming over the Federal Reserve’s interest rate policy.

The Fed meets later this month and has been closely monitoring prices and their impact. Rising inflation dashed hopes earlier this year for an interest-rate cut. Wall Street has since leaned more toward a potential rate increase, which the central bank can use to help cool inflation.

Wall Street is anticipating at least one rate hike by the end of the year, with a nearly 38% chance that could happen at the upcoming meeting next week, according to CME FedWatch.

Higher energy costs threaten to take a bigger chunk out of household budgets, which means a shift in spending toward more basic needs, like gasoline. Nationally, a gallon of gasoline costs $4.10, according to AAA. That’s still lower than this spring as the conflict in Iran expanded, but it’s almost a dollar higher than last year at this time.

Investors are worried about the impact to companies profits. Those profits and expectations for more growth are what typically justifies a stock’s value. The latest round of corporate earnings showed that companies are still notching growth, but concerns are growing.

American Express fell 4.3% despite reporting a jump in profit during its most recent quarter. Amex maintained its profit forecast for the year and has been spending more heavily to keep wealthy individuals amid more competition.

Worries about the sustainability of broader profits are on top of lingering concerns about AI-focused tech companies. Companies like Alphabet and Nvidia have been spending heavily on AI technology. Investors are increasingly questioning whether those investments will produce profits to justify the large stock values that have been steering the broader market higher throughout the year.

AP Business Writers Elaine Kurtenbach and Matt Ott contributed to this report.

WASHINGTON — The United States will open a formal investigation into the European Union’s trade practices, President Donald Trump said on Friday, claiming the bloc has unfairly levied billions of dollars of fines against Google, Apple, and other U.S. tech giants.

The Republican president made the announcement a day after the EU hit Google with a fine of 890 million euros, or $1 billion, after it said the technology behemoth broke digital antitrust regulations by setting up Google Play and its ubiquitous search engine to corral consumers toward its own services and apps to the detriment of competitors.

In a lengthy post on social media, Trump said he has warned the EU about its practice of fining U.S. tech companies. He named Google, Apple, Meta, Amazon, and others.

“The United States of America is not a ‘PIGGYBANK’ for Europe, nor will we allow it to be!” Trump said, adding that his post should serve as notice of an immediate trade investigation “into the practice of ‘ROBBING’ American Companies and, in turn, the American Taxpayer.”

Trump’s move comes a day after the White House announced double-digit tariffs on imports from more than 60 countries, accusing them of inadequately enforcing bans on goods produced by forced labor. The new tariffs replace temporary 10% worldwide import taxes that Trump imposed after the Supreme Court struck down his biggest tariffs.

The new tariffs are being implemented using Section 301 of the Trade Act of 1974, which permits the president to impose import taxes and other sanctions against countries found to engage in “unjustifiable,” “unreasonable,” or “discriminatory” trade practices.

The EU’s billion-dollar fine against Google was the latest major crackdown on Big Tech by Brussels, which has led the world in reining in some of the world’s largest companies from Silicon Valley to Beijing.

It has done so despite the risk of incurring the wrath of Trump, who has lashed out at the 27-nation bloc’s digital regulations amid a broader campaign against Europe: imposing high tariffs, making threats to seize Greenland from Denmark by force, and rattling trust within the NATO military alliance.

Trump had threatened retaliation if American tech companies are penalized.

Google had recently lost its appeal of a $4.5 billion antitrust fine imposed by the EU for throttling competition and reducing consumer choice through the dominance of its mobile Android operating system.

The European Commission, the bloc’s executive branch and highest antitrust enforcer, said it was acting in the interest of consumers after an investigation of Google.

“The best products should succeed because they’re better, not because they’re owned by the company running the search engine. And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut,” said Teresa Ribera, the commission’s executive vice president for clean, just, and competitive transition.

Google’s president of global affairs, Kent Walker, blasted the fine as “product degradation driven by a small group of self-serving complainants” that will have a negative impact on European businesses and consumers.

He said the EU’s Digital Markets Act forces Google “to strip away real-time search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play.”

The EU describes some of the world’s leading tech giants — Amazon, Apple, Google parent Alphabet, Meta, Microsoft, and TikTok owner ByteDance — as “gatekeepers” that control access for consumers.

“In the EU, businesses have the right to compete fairly. Gatekeepers have the obligation to ensure a level playing field and consumers the right to choose for cheaper alternative offers,” European Commission spokesperson Thomas Regnier said. Alphabet reported $403 billion in revenue last year.