04:19 PM EDT, 06/20/2025 (MT Newswires) -- US benchmark equity indexes closed mixed on Friday, as markets weigh ongoing developments in the Israel-Iran conflict and a potential rate cut by the Federal Reserve in July.

The Nasdaq was down 0.5% to 19,447.41, while the S&P 500 eased 0.2% to 5,967.84. The Dow Jones Industrial Average increased 0.1% to 42,206.82. Among sectors, energy led the gainers while communication saw the steepest decline.

US Treasury yields were lower, with the 10-year rate declining 1.4 basis points to 4.38% and the two-year rate dropping 3.8 basis points to 3.92%.

August West Texas Intermediate crude oil increased 0.7% to $73.98 a barrel on Friday.

US President Donald Trump will allow two weeks for diplomatic efforts before deciding whether to launch a strike against Iran amid its ongoing conflict with Israel, news outlets reported.

"Based on the fact that there's a substantial chance of negotiations that may or may not take place with Iran in the future, I will make my decision whether or not to go within the next two weeks," Trump said, according to CNBC, citing a statement read Thursday by White House spokesperson Karoline Leavitt.

The Fed may be in a position to ease monetary policy "as early as July," as tariffs are unlikely to increase inflation significantly, Fed Governor Christopher Waller said, according to CNBC. "That would be my view, whether the committee would go along with it or not."

In economic news, manufacturing activity in the US Mid-Atlantic region remained in contraction territory in June, while the employment gauge reached the lowest since May 2020, a survey from the Philadelphia Fed showed.

The Conference Board's Leading Economic Index for the US continued its downward trend in May, ticking down by 0.1% to 99.0. The index declined 1.4% in April and 2.7% over the six months ending May 2025.

In company news, Kroger ( KR ) shares were up 9.8%, the top gainer on the S&P 500. The company raised its guidance for identical sales growth for fiscal 2025 after the supermarket chain reported a year-on-year increase in the metric for the first quarter.

Builders FirstSource ( BLDR ) shares were up 7.5% even after Wedbush reduced the price target on the company's stock to $145 from $190, citing weaker housing starts and lumber deflation.

Accenture ( ACN ) shares were down 6.8%, the steepest decline on the S&P. The company raised its full-year earnings outlook and reported fiscal third-quarter results above market expectations, though the consulting firm's bookings declined on an annual basis.

Gold declined 0.8% to $3,380.90 per troy ounce, while silver was down 2.6% to $35.97 per troy ounce.