US equity markets posted gains on Friday, driven by a retreat in oil prices that has returned to pre-conflict levels following the escalation with Iran.
The S&P 500 rose 0.5% in the session, reflecting investor relief as energy cost pressures abated.
However, the broader rally was constrained by continued selling in the technology sector, particularly among artificial intelligence-focused stocks.
The divergence highlights a shifting market dynamic.
While the easing of geopolitical risk in the energy complex provided a bid for cyclical and energy-sensitive names, the tech-heavy Nasdaq Composite faced headwinds from the ongoing AI valuation debate.
The weakness in AI stocks is keeping the market in check, preventing a full recovery from earlier losses and pointing toward a losing week for major indices.