The broad market index increased by 0.8%, while the tech-focused Nasdaq rose by 1.6%, with both indices also hitting new intraday highs during the trading day. Conversely, the Dow fell approximately 80 points, or 0.2%, trailing behind its counterparts.
Investor optimism was lifted after reports suggested that diplomatic talks between the US and Iran might soon restart. Media sources quoted a Pakistani official stating that Iran’s Foreign Minister Abbas Araghchi is anticipated to visit Islamabad for discussions with Pakistani intermediaries concerning a possible second round of negotiations with the US, fueling hopes for de-escalation in the area.
Oil prices softened following this news, providing further support to equities. US West Texas Intermediate crude was trading above $94 per barrel, while Brent crude remained over $105 a barrel, retreating from recent peaks as supply disruption concerns eased.
The positive momentum was also supported by US President Donald Trump’s announcement the previous day regarding Israel and Lebanon agreeing to extend their ceasefire by three weeks. In a social media update, Trump mentioned that the US would collaborate with Lebanon to assist in defending against Hezbollah, the Iran-supported militant organization, indicating ongoing diplomatic efforts in the region.
Despite the cautious positivity, geopolitical tensions are still high. The situation has shifted into a naval confrontation between the US and Iran over the Strait of Hormuz, a vital global oil transit route, with reports of both parties seizing commercial vessels. Trump emphasized a tough approach, having ordered the US Navy to respond to any threats in the strait.
Friday’s gains were also bolstered by a significant rally in semiconductor stocks. Intel’s shares jumped 23% after the chipmaker revealed better-than-forecast quarterly earnings and issued an optimistic outlook, continuing the positive trend seen throughout the sector this week.
The broader iShares Semiconductor ETF has shown notable increases, reflecting sustained investor enthusiasm for chip stocks.
On a weekly basis, however, performance remained varied. The S&P 500 is positioned to end the week up by around 0.6%, and the Nasdaq is likely to rise about 1.5%. The Dow, on the other hand, appears set for a weekly loss of approximately 0.4%, underperforming the overall market.
