U.S. stocks steadied Friday, and oil pulled back from its $100-a-barrel peak on reports that Pakistan and Iran were exploring new talks with the U.S. The Dow Jones Industrial Average rose 0.46% to 51947.25, the S&P 500 gained 0.05% to 7411.98, while the Nasdaq Composite dropped 0.64% to 24975.82.

Brent crude fell about 3.9% to around $96.78 a barrel, easing pressure on bond yields which had surged this week amid inflation fears. Traders are now pricing in a 38% chance of a rate hike at next week's Federal Reserve meeting. Global bond markets saw significant declines, with German 10-year yields hitting their highest since 2011.

In corporate news, Intel slipped 7.9% despite strong revenue, while SAP rose 9.3% on better-than-expected cloud revenue. U.S. business activity expanded at an eight-month high in July, and new home sales ticked up in June, exceeding expectations.