The S&P 500 benchmark and technology stocks Nasdaq each hit its third consecutive record high on Friday, while the blue-chip Dow Jones marked its highest level since late February as investors cheered Iran’s decision to open the market. Strait of Hormuz and were optimistic that an agreement could be reached with the United States to end their war.
Iranian Foreign Minister Abbas Araqchi said in a message on This follows US President Donald Trump’s announcement that negotiations could take place this weekend between Tehran and Washington and that they could soon reach a peace deal to end the war in Iran, which has left thousands dead since the US and Israel launched joint strikes against Iran on February 28. oil price fell more than 11%, easing inflation fears. The Strait of Hormuz is a vital waterway for global energy transportation.
“The fear that oil will cause the world to slow down is lessening as we move toward a possible final deal,” said Bob Doll, CEO of Crossmark, who noted that while there is still no signed deal between the U.S. and Iran, “it appears to be heading in enough of a direction that the market is going up.”
The tech-heavy Nasdaq Composite index gained 365.78 points, or 1.52%, to 24,468.48, for its 13th straight advance, marking its longest winning streak since 1992.
THE Dow Jones Industrial Average rose 868.71 points, or 1.79%, to 49,447.43, the S&P 500 gained 84.78 points, or 1.20%, to 7,126.06.
Unofficially, over the week, the S&P 500 gained 4.53%, the Nasdaq 6.84% and the Dow Jones 3.2%.
Energy Stocks Slide as Oil Slumps The small-cap Russell 2000 index outperformed large-cap gains, closing up 2.1%, and also posted a record close after hitting its first intraday record since the start of the war.
“Lower energy prices are having a bigger impact on small caps because their margins are tighter,” said Nick Johnson, CEO and CIO of Willis Johnson & Associates, adding, “it’s starting to become clear that the U.S. and Iran want to put this behind them.”
Among the 11 major industry sectors in the S&P 500, energy was the biggest loser, finishing down 2.9%, with Exxon Mobil, down 3.6%, and Chevron, down 2.2%, creating the second and third biggest drags on the benchmark index on the day.
The biggest winner was consumer discretionary, which finished just under 2%, with cruise operators leading its advance. Royal Caribbean jumped 7.3% while Carnival rose 7%. Industrial products were the second strongest sector, finishing up 1.8%, followed by United Airlines up 7%, and leading the percentage gains.
CAUTION CONTINUES ON STRAIT CROSSING Still, some analysts have warned that logistical challenges remain for shippers.
“Ship operators still face astronomical war risk insurance premiums, potential mine risks and uncertainty over rule enforcement,” said Erik Bethel, general partner at maritime investment firm Mare Liberum. The biggest drag on the S&P came from Netflix, which fell 9.7% after forecasting lower-than-expected earnings for the current quarter. The company also announced the departure of co-founder and longtime chairman Reed Hastings, ending a 29-year tenure.
Alcoa shares ended 6.8% lower after the aluminum producer reported first-quarter profit and revenue that fell short of analyst estimates, citing high costs and slowing demand.
Advancing issues outnumbered decliners by a ratio of 4.03 to 1 on the New York Stock Exchange, where there were 623 new highs and 46 new lows. On the Nasdaq, 3,685 stocks rose and 1,183 fell, with advancing issues outnumbering decliners by a ratio of 3.11 to 1. The S&P 500 posted 49 new 52-week highs and no new lows.
Volume was relatively strong on US exchanges, where 20.29 billion shares changed hands, compared to the 19.12 billion moving average for the last 20 sessions.
