Market Snapshot: Dow snaps 8-session skid, but logs worst weekly fall since March as trade jitters persist

U.S. stock benchmarks ended mostly higher on Friday as an OPEC-inspired rally in energy shares helped the Dow industrials halt a lengthy slide, but equities rang up weekly losses in a period pockmarked by a series of trade-related spats.

What did the main benchmarks do?

The Dow Jones Industrial Average DJIA, +0.49% rose 119.19 points, or 0.5%, to 24,580.89, with the equity gauge ending an eight-day losing streak, that if extended to a ninth session would have represented the longest losing since 1978.

The S&P 500 SPX, +0.19% added 0.2%, or 5.12 points, to close at 2,754,88. Eight of 11 sectors finished higher, led by a 2.2% rise in the energy sector, a move that tracked a sharp rally in crude-oil prices.

The Nasdaq Composite Index COMP, -0.26% closed down 20.13, or 0.3%, at 7,692.82.

All three benchmarks finished off their best levels of the day in the final minutes of trade. Friday’s trading also marked the annual reconstitution of the Russell Indexes, where the index provider makes rule-based changes to composition of its indexes.

For the week, the Dow closed off 2%, marking its largest weekly decline since March 23, and its second straight weekly fall. The S&P 500 lost 0.9% over that frame and the Nasdaq booked a weekly drop of 0.3%, ending its streak of weekly gains at four straight.

What drove markets?

Investors have worried that trade tensions between the U.S. and major trading partners such as China and the European Union could develop into a big drag on the global economy. These concerns come as the U.S. economy, the world’s largest, is increasingly viewed as in the late stages of its expansion. The EU has said it would begin implementing tariffs on $3.2 billion in U.S. imports on Friday.

In the latest trade development, Trump threatened 20% tariffs on European cars coming into the U.S. General Motors Co. GM, +0.32%  fell 0.3% while Ford Motor Co. F, -0.51%  was down 0.5%. Tesla Inc. TSA, +24.20%  sank 3.8%.

Check out: And the most American-made car is…

U.S. crude-oil futures CLQ8, +5.71% CLQ8, +5.71% surged 4.6% to settle at its highest level in a month, after members of the Organization of the Petroleum Exporting Countries and other major producers struck a deal that would result in an effective rise in production of around 600,000 barrels a day, a figure that comes as a relief to bullish traders who feared a more aggressive increase.

See: 5 things investors need to know about OPEC’s decision to lift oil output

What did strategists say?

“We’re seeing continued uncertainty around trade, but there’s also a recognition that economic fundamentals remain strong, which could provide the kind of sturdy backdrop needed to support risk assets going forward,” said Emily Roland, head of capital markets research at John Hancock Investments.

“The fact that recent declines have essentially been mild may be a sign that investors don’t believe we’re headed for a full-out trade war. Rhetoric could still escalate, having a meaningful impact on businesses and consumers, but we’re not there yet. We’re still in a wait-and-see mode,” she said. “There will be further negotiations, and we’ll likely continue seeing choppiness as this gets hammered out.”

Read more: Here’s what may be eroding gold’s traditional haven status

How did other markets perform?

Gold futures  GCQ8, +0.05% closed at break-even levels and logged a weekly drop. European stocks SXXP, +1.09% mostly gained as Greece received debt relief that will help it exit a bailout program, while Asian markets finished mixed.

The ICE U.S. Dollar Index DXY, -0.34% slipped 0.1%.

Which stocks were in focus?

Shares of Exxon Mobil Corp. XOM, +2.12%  closed 2.1% higher, while shares of Chevron Corp. CVX, +2.05%  gained 2.1%. Both were among the biggest gainers on the Dow. Occidental Petroleum Corp. OXY, +1.51%  rose 1.5%, Halliburton Co. HAL, +2.89%  added 2.9% and Marathon Oil Corp. MRO, +7.83%  surged 7.8%.

Shares in Red Hat Inc. RHT, -14.23% fell more than 14% a day after the software company gave a softer-than-anticipated quarterly outlook.

BlackBerry Ltd. BB, -8.72% BB, -9.29% reported adjusted first-quarter earnings that topped expectations, though revenue fell short of analyst forecasts. U.S.-listed shares sank 8.7%.

Shares in used-car seller CarMax Inc. KMX, +12.86% gained 13% after it reported first-quarter earnings that topped expectations.

All of the banks tested by the Federal Reserve met the regulatory minimums for capital after being checked for the impact of a severe recession, the central bank announced Thursday. The Financial Select Sector SPDR Fund XLF, -0.48%  lost 0.5%.

Economic reports

Data provider Markit released June data on both the manufacturing and services sectors. The read on manufacturing fell to 54.6 from 56.4, while the services gauge dipped to 56.5 from 56.8.

Check out: MarketWatch’s Economic Calendar

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