"I would think we'd be seeing more risk off with everything that could happen into the weekend with Syria, to the continued lengthening of the tax plan timeline, as well as Dudley's comments," Andrew Brenner, head of international fixed income for National Alliance Capital Markets, said by phone. "But there's a short base out there and people are under-invested in equities and very negative, which always keeps a bid into the market."
What investors will be looking out in the coming days:
- US Secretary of State Rex Tillerson will on Sunday attend the Group of Seven gathering in Italy and next week meet with Russian counterpart Sergei Lavrov in Moscow.
- Argentina, Brazil, Canada, Chile and South Korea are among countries setting interest rates next week.
- US banks will start reporting first-quarter earnings, led by Citigroup, JPMorgan Chase, and Wells Fargo.
Here are the main moves in markets:
- The S&P 500 fell 0.1 per cent to 2,355.58 as of 4 p.m. in New York. Futures fell as much as 0.7 per cent in the hour after Thursday night's attack in Syria.
- The CBOE Volatility index rose 3 per cent, paring a gain that topped 6 per cent.
- The Stoxx Europe 600 index added 0.1 per cent. Volatility measures from Hong Kong to Europe increased.
- The Bloomberg Dollar Spot index advanced 0.3 per cent, rebounding from earlier losses as it heads for a weekly advance of 0.6 per cent.
- The ruble dropped 1.5 per cent. The currency has been trading near the highest since July 2015. President Vladimir Putin believes the US airstrikes caused "considerable damage" to relations with Russia, a Kremlin spokesman said.
- The yen weakened 0.4 percent to 111.198 after erasing gains of as much as 0.6 per cent.
- The euro slipped 0.3 per cent, the British pound dropped 0.6 per cent.
- South Africa's rand touched the weakest level this year after Fitch Ratings became the second company to cut the country's credit assessment to junk. It traded at 13.809 per dollar, lower by 0.4 per cent.
- The yield on 10-year Treasuries rose four basis points to 2.38 per cent after falling as low as 2.28 per cent.
- The yield on the 10-year German benchmark fell four basis points to 0.23 per cent.
- West Texas Intermediate crude added 1 per cent to settle at $52.245, after touching the highest in a month. Oil rose about 3 per cent for the week.
- Gold futures rose 0.3 per cent to $1,256.90. The metal climbed more than 1 per cent earlier in the session to the highest since November, following two days of declines.
- Japan's Topix index climbed 0.7 per cent, rebounding after erasing a rally of as much as 1.2 per cent during the morning session. The Shanghai Composite index rose 0.2 per cent, giving it a 2 per cent gain for the holiday-shortened week.