Key Highlights

● Antero Midstream rose Friday with no company-specific news, moving with the energy sector.

● Brent settled at $109.86, its highest since May 19, as Iran escalated tanker attacks.

● Energy was the S&P 500's top sector as money rotated out of technology.

● Kinder Morgan reports Oct 21, with Halliburton on Oct 20 and SLB on Oct 23.

Moving with the sector

Antero Midstream (NYSE:AM), which owns gathering pipelines, compression and water-handling assets that serve Antero Resources (NYSE:AR) in the Appalachian Basin, rose on Friday, according to a market report. The gain came with no company-specific news; the report said the stock moved with the energy sector.

The S&P MidCap 400 member was part of a wide rally across oil and gas names. Energy was the top-performing sector in the S&P 500, according to market reports, as investors moved money out of technology and into areas seen as less exposed to the artificial intelligence trade.

Midstream joined producers

Pipeline operators were among the day's notable gainers. Kinder Morgan (NYSE:KMI) jumped to $34.22 ahead of its third-quarter report, and Targa Resources (NYSE:TRGP) jumped to $294.22, per market data. EQT (NYSE:EQT), the Appalachian natural gas producer, also gained, reports indicated.

Producers led the charge. Matador Resources (NYSE:MTDR) surged to $57.48 and Crescent Energy (NYSE:CRGY) climbed to $13.77, according to market data. Diamondback Energy (NASDAQ:FANG) and EOG Resources (NYSE:EOG) jumped, while Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) rose, market reports showed.

Oil's surge

Crude supplied the spark. Brent rose $3.94 to settle at $109.86, its highest since May 19, after briefly touching $110, according to market reports. West Texas Intermediate traded above $101 intraday; one report had the December contract settling at $99.02, while another put the November contract at $101.71.

The rally reflected Iran's escalating attacks on tankers in the Strait of Hormuz and threats to Russian refining, according to market reports. ING strategists said oil is "pricing in a significant risk premium." In Washington, Rep. Gregory Meeks introduced a bipartisan bill to revoke Russian energy transaction licenses.

A split market

Outside energy, the tape was weak. The Nasdaq Composite dropped 572.99 points to 26,140.03, the S&P 500 fell 84.62 points to 7,659.44 and the Dow Jones Industrial Average slipped 175.28 points to 52,002.41. The Russell 2000 lost 45.90 points to about 2,721. No closing level for the S&P MidCap 400 was available.

Chip stocks extended their losing streak and software sold off late, while utilities and consumer staples rose. Six of the 11 S&P 500 sectors finished higher, according to market data. Lower Treasury yields offered some support to income-oriented stocks: the 10-year yield eased to roughly 5.1, down from above 5.3 earlier in October, its highest level since 2002.

Antero Midstream Eyes Antero Resources Activity

Midstream earnings start next week. Kinder Morgan reports Wednesday, Oct 21, after the close, giving investors an early look at pipeline volumes and demand. Halliburton (NYSE:HAL) reports Tuesday, Oct 20, and SLB (NYSE:SLB) reports Friday, Oct 23, before the open, offering a read on drilling activity.

Investors will also watch whether Friday's rotation from technology into energy carries into next week. Geopolitics will keep oil volatile, with tanker traffic through the Strait of Hormuz the key variable. The Federal Reserve's next decision is due Oct 28; Fed Chair Kevin Warsh said at an IMF gathering in Bangkok, "I don't prejudge meetings."

Antero Midstream's own performance is closely tied to activity levels at Antero Resources, so natural gas prices and producer spending plans remain in focus.