Stocks Settle Higher as Crude Oil Prices Stabilize

Stocks closed higher on Friday as crude oil prices stabilized, helping to alleviate some concerns over inflation. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all finished the day on the rise. E-mini S&P futures and September E-mini Nasdaq futures also increased, indicating positive market sentiment. The stabilization of crude oil prices was attributed to Iranian President Masoud Pezeshkian's statement that the US-Iran war should end, in order to achieve victory and gain international recognition.

Meanwhile, markets are eagerly awaiting US Treasury Secretary Bessent's press conference on Monday, during which he will provide details on the administration's plans to isolate Iran's economy. This potential economic isolation could have significant implications for the Middle Eastern oil market and, consequently, crude oil prices.

Google recently reported a significant loss of $186 billion after four of its top AI researchers left the company. However, CEO Sundar Pichai remains optimistic and stated that Google will still be a founding investor in the sector. In other tech news, Microsoft is believed to have an 85% upside potential, while Broadcom was deemed a better investment choice by the reporter.

Rocket Lab and AST SpaceMobile were highlighted as stocks with potential upside. Meanwhile, cryptocurrency-related stocks led the broader market gains as Bitcoin reached a 3-month high and had surged more than 20% this week. Institutional buying returned to support Bitcoin after the US Treasury announced an intention to double its long-dated bond buybacks, sparking a short-covering rally in cryptocurrencies.

Following a mixed economic report from the US, featuring a slight dip in the Aug S&P manufacturing PMI and an unexpected rise in the Aug S&P services PMI, investors now await further insights into the US economy. The markets are also digesting the potential for a rate hike at the next Federal Open Market Committee (FOMC) meeting on September 15-16, with a 39% chance of a 25 bp increase.