Stocks Drift Lower Friday; Oil Prices E04/10 15:31

   Stocks drifted mostly lower on Wall Street and oil prices slipped ahead of 
planned U.S.-Iran talks following a shaky ceasefire agreement. 

   (AP) -- Stocks drifted mostly lower on Wall Street and oil prices slipped 
ahead of planned U.S.-Iran talks following a shaky ceasefire agreement. The S&P 
500 fell 0.1% Friday. The Dow Jones Industrial Average lost 0.6%, and the 
Nasdaq composite rose 0.4%. Trading remained choppy ahead of high-level talks 
between negotiators from Iran and the U.S. planned for Saturday in Pakistan. 
The U.S. government reported a sharp spike in inflation in March because of the 
biggest monthly jump in gas prices in six decades, but the increase wasn't 
quite as bad as economists were expecting. Treasury yields rose in the bond 
market.

   THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below.

   Stocks wavered on Wall Street Friday and oil prices eased ahead of planned 
U.S.-Iran talks following a shaky ceasefire agreement.

   The S&P 500 fell 0.1% in afternoon trading, on pace for a weekly loss. The 
Dow Jones Industrial Average fell 271 points, or 0.6%, as of 3:21 p.m. Eastern. 
The Nasdaq composite rose 0.4%.

   Major indexes have been gaining ground over the last two weeks amid optimism 
that the war with Iran could be heading toward a resolution. The S&P 500 has 
erased most of its losses from March and is just 2.3% short of its all-time 
high set in January. The market is still prone to big swings on developments 
around the war.

   Trading on Wall Street remained choppy. Most companies in the benchmark S&P 
500 were losing ground, with health care stocks driving much of the decline. 
Eli Lilly and Co. fell 1.8% and Johnson & Johnson slid 1.3% lower.

   Technology stocks with hefty values helped offset losses elsewhere. Nvidia 
rose 3% and Broadcom rose 5.3%.

   Markets in Asia gained ground while markets in Europe were mixed.

   Oil prices have been behind many of the stock market's sharp movements. Oil 
prices have surged as shipping through the vital Strait of Hormuz essentially 
stalled since the war began.

   Brent crude oil, the international standard, has gone from roughly $70 per 
barrel before the war in late February to more than $119 at times. Brent for 
June delivery fell 0.8% to $95.20 per barrel Friday.

   A barrel of U.S. crude oil for May delivery dropped 1.3% to $96.57.

   Negotiators from Iran and the U.S. are preparing for high-level talks on 
Saturday. The situation remains uncertain. Iran's semiofficial Tasnim news 
agency claimed that talks wouldn't happen unless Israel stopped its attacks in 
Lebanon.

   The conflict is behind surging inflation in the U.S. in March. The 
government reported the biggest spike in inflation in four years as prices at 
the gas pump jumped. But, the inflation increase was just short of what 
economists expected.

   Bond yields held mostly steady following the latest inflation update. The 
yield on the 10-year Treasury rose to 4.31% from 4.29% late Thursday.

   Inflation has been a lingering concern for economists. Prices on a range of 
consumer goods and services are already stubbornly high, in part from the 
impact of extensive global tariffs. Higher gas prices are immediately felt by 
drivers at the pump, but they could eventually raise prices on everything from 
food to airfare as companies pass along higher costs for shipping and fuel.

   Analysts are warning that there might be a drawn out impact from the oil 
supply shock in the months ahead.

   "While I'm glad to see the effects to be less than expected in March, the 
effects in April are now more likely to be worse," Jamie Cox, managing partner 
for Harris Financial Group, wrote in a research note.

   Consumer sentiment slumped 10.7% percent in April, according to a closely 
watched monthly survey from the University of Michigan. It also shows that 
consumers are growing more worried about inflation, with year-ahead 
expectations surging to 4.8% in April from 3.8% in March.

   Inflation remains a major concern for the Federal Reserve, which has 
signaled more caution amid worries about inflation reheating. The rate of 
inflation remains above the central bank's 2% target. The threat of rising 
inflation will likely mean the central bank continues to hold interest rates 
steady. Several Fed officials have also said a rate hike may be needed if 
inflation doesn't cool.

   Lower interest rates help boost stocks and other investments by lowering 
borrowing costs. Interest rate cuts also risk worsening inflation.