Key Highlights

● EOG jumped Friday as an oil spike lifted large US producers.

● As a pure producer without refining, its profits move closely with oil and gas prices.

● Energy topped the sector board while all 30 PHLX Semiconductor Index members fell.

● The Fed decides Oct 28; Halliburton reports Oct 20 and SLB Oct 23.

Producers caught the bid

EOG Resources (NYSE:EOG) jumped on Friday as an oil spike lifted big US producers, according to market reports. Scotiabank's Sector Perform rating on the stock was also noted in a rundown of the day's movers.

EOG, based in Houston, is one of the largest independent crude oil and natural gas producers in the United States, with operations in major shale basins including the Permian and the Eagle Ford in Texas. As a pure producer without refining operations, its profits move closely with the price of oil and gas.

Other producers rallied too. Diamondback Energy (NASDAQ:FANG) closed at $203.91, and ConocoPhillips (NYSE:COP) set an intraday record high. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) also rose.

Brent nears $110

Brent crude climbed $3.94 to settle at $109.86 a barrel, its highest close since May 19. It touched $110 intraday, a first since May. West Texas Intermediate gained as well; one report put the December contract at $99.02, up $2.52, while other reports showed prices above $101.

The catalyst was Iran escalating attacks on tankers in the Strait of Hormuz, alongside threats to Russian refining, according to market reports. ING commodities strategists said oil is "pricing in a significant risk premium."

President Donald Trump's remarks underscored the risks. "Now, we're looking at Pickaxe Mountain. We may have to go there," he said.

A tale of two markets

The S&P 500 fell 84.62 points to 7,659.44 on Friday, the Dow Jones Industrial Average lost 175.28 points to 52,002.41 and the Nasdaq Composite dropped 572.99 points to 26,140.03. Yet energy was the top sector, and six of 11 S&P 500 sectors closed higher.

Technology bore the brunt of the selling. All 30 members of the PHLX Semiconductor Index fell, and software stocks slid late in the day. Investors have shifted from asking what artificial intelligence can do to how it will be paid for, market commentary said. Money rotated into energy, utilities, consumer staples, health care, financials and materials.

The Cboe Volatility Index rose 3.53 points to 19.99, after hitting 22.31 intraday, its highest since June 11.

Inflation and the Fed

Higher energy costs have fed into inflation data. September's consumer price index, released Wednesday, came in hotter than expected, and producer prices posted their largest monthly increase since March 2022. On Friday, import and export prices for September both rose more than economists had forecast. US gasoline averages $4.33 a gallon, versus $3.06 a year ago.

Federal Reserve Chair Kevin Warsh, speaking at an IMF gathering in Bangkok, gave no preview of the next decision. "I don't prejudge meetings," he said. The 10-year Treasury yield eased to roughly 5.1.

EOG Eyes Fed Date and IEA Release

The Fed's next rate decision is due Oct 28, after a quarter-point hike in September, its first in three years. Markets still price a hike by December. For energy, oil-field service companies Halliburton (NYSE:HAL) and SLB (NYSE:SLB) report on Oct 20 and Oct 23, respectively. Traders will also watch whether the International Energy Agency's pledged release of the remaining 100 million barrels under its March agreement helps cool prices, and whether tensions around the Strait of Hormuz escalate further.