US stocks drifted on Friday as falling oil prices supported sentiment, while investors turned their attention to the highly anticipated stock market debut of SpaceX, a closely watched test of appetite for artificial intelligence-related investments, according to AP.The S&P 500 rose 0.1%, while the Dow Jones Industrial Average gained 270 points, or 0.5%, as of 9:35 am Eastern time. The Nasdaq Composite was down 0.1%, AP reported.SpaceX is the first of three giant AI-related companies expected to begin trading on US markets and could offer insight into whether investors remain willing to back AI stocks after sharp swings and growing doubts over the past week.Markets drew support from a 2.2% decline in Brent crude oil prices, which fell to $88.36 a barrel, extending losses for the week.Oil prices have retreated since US President Donald Trump on Thursday withdrew his threat to launch strikes on Iran and suggested that a possible agreement with Tehran could be near.A deal to end the conflict could reopen the Strait of Hormuz and allow oil tankers to resume shipments from the Persian Gulf. The disruption caused by the war had pushed Brent crude up from about $70 a barrel and contributed to inflationary pressures globally.However, AP noted that markets have repeatedly rallied on hopes of an agreement with Iran, only to reverse course when expectations were not met.The bigger concern for Wall Street over the past week has been the performance of AI stocks, which have swung sharply after previously surging to record highs. Investors have increasingly questioned whether valuations had risen too far, too quickly amid enthusiasm surrounding artificial intelligence.Several AI-linked stocks declined on Friday. Micron Technology fell 2%, while Broadcom slipped 0.8%.Some of the pressure on AI stocks may be linked to investors reallocating funds ahead of SpaceX’s debut and other large AI-related initial public offerings.SpaceX shares are expected to begin trading on the Nasdaq later in the day, though the exact timing remains unclear. Elon Musk’s rocket company also has substantial AI investments and had accumulated $29.1 billion in debt as of the end of March, according to the report.If SpaceX shares remain at their offering price, the company would command a market value of $1.77 trillion, placing it alongside Broadcom and Meta Platforms as the sixth and seventh most valuable companies on Wall Street.In the bond market, Treasury yields edged higher after falling sharply a day earlier. The yield on the 10-year Treasury rose to 4.48% from 4.45% late Thursday.Higher yields can slow economic activity and weigh on asset prices, particularly those viewed as highly valued. Some critics have argued that the AI sector is showing signs of a bubble after a prolonged surge in investment.Outside the US, stock markets advanced as investors caught up with Thursday’s gains on Wall Street. South Korea’s Kospi jumped 4.6%, Tokyo’s Nikkei 225 rose 2.8%, and France’s CAC 40 gained 1.8%.
