Wall Street extended gains on Friday, with the S&P 500 rising 0.2% and the Nasdaq gaining 0.2% after reports of continued progress in US-Iran ceasefire negotiations. According to CNBC TV18, the Dow Jones Industrial Average gained 170 points, or 0.3%, with all three benchmarks touching fresh intraday highs during the session. The market gains came as investors responded positively to diplomatic developments that eased geopolitical concerns in the Middle East. As per Investing.com India, the S&P 500 and even-weighted S&P 500 both hit new all-time highs during the session, with the Nasdaq and QQQ also reaching record levels. The trend remains clearly positive with prospects of lower oil prices supporting further upward momentum, though markets continue to closely monitor geopolitical risks in West Asia, particularly the impact of disruptions around the Strait of Hormuz.
Markets moved higher after Axios reported that US and Iranian negotiators reached a breakthrough on a 60-day memorandum of understanding aimed at extending the ceasefire and enabling further talks over Tehran's nuclear programme. As reported by Reuters, negotiations on Iran's nuclear program would be held during the 60-day truce period, but the plan still needed the approval of President Donald Trump. According to Investing.com India, the details of the proposed agreement are not clear and may be kicking the can down the road as far as the key elements of the end of Iran's nuclear weapons goals and their control of the Strait of Hormuz. However, Citadel's Macro Strategist Frank Flight argues that Iran's internet connectivity has recovered to roughly 86% of pre-conflict levels after months of disruption, suggesting authorities are preparing for a return to more normal economic activity. The increasingly public appearances of senior Iranian military officials imply leadership believes the immediate risk of escalation has diminished, with reports suggesting negotiators have been working toward extending ceasefire arrangements and reopening the Strait of Hormuz. Sentiment has remained broadly upbeat since President Trump signalled last week that the US was in the "final stages" of talks with Iran, helping drive the S&P 500 and Nasdaq to record highs for three consecutive sessions this week.
Oil prices experienced significant volatility following the diplomatic developments, with Brent crude futures slipping more than 1% and West Texas Intermediate crude also declining over 1% after recent volatility linked to missile strikes and shifting ceasefire expectations. According to CNBC TV18, crude benchmarks eased on the day after recent volatility linked to missile strikes and shifting ceasefire expectations. The earlier spike in oil prices came after Iran's Revolutionary Guard said it had targeted a US airbase, according to Iran's Tasnim News Agency. The development followed fresh US military strikes on an Iranian military facility, heightening concerns over supply disruptions in the region. However, dated Brent fell sharply below $100, reaching its lowest level since March, signalling that the physical market is beginning to anticipate easing supply constraints even if diplomats have not yet crossed the finish line. As noted by Investing.com India, Brent crude futures initially fell before recovering, reflecting the volatile nature of oil markets during this period of diplomatic uncertainty.
The softer-than-feared PCE report combined with falling oil prices and declining rate hike odds created a powerful cross-asset relief rally spanning stocks, bonds, gold and risk assets. According to Investing.com India, Treasury yields finished lower across the curve despite another round of inflation warnings from Federal Reserve officials. The bond market's verdict was revealing, with investors appearing increasingly convinced that the latest PCE data did not materially alter the policy outlook and that easing energy risks matter more than another incremental inflation data point. 30-year Treasury yields slipped back below the psychologically important 5% threshold, reinforcing the idea that investors are becoming less concerned about a renewed inflation spiral. The US dollar weakened against every major developed market currency as rate-hike odds moved lower, with traders beginning to mark down the probability that the Federal Reserve would need to tighten policy again. This development is particularly significant for Asia, where energy-importing economies face lower inflationary pressures and improved growth expectations from potential Hormuz reopening. Investors are also weighing implications for the Federal Reserve's policy path as oil price volatility feeds into inflation expectations.
On the corporate front, Dell Technologies was a standout gainer, with shares surging about 35% after the company raised its full-year guidance and reported stronger-than-expected results. According to CNBC TV18, the AI infrastructure push, including a sharp upgrade in revenue outlook driven by server demand, added further momentum to the broader tech-led rally. The company's strong performance underscores the growing demand for AI infrastructure solutions, with investors increasingly confident about the long-term prospects of artificial intelligence adoption across enterprise sectors. The surge in Dell's stock price reflects broader market optimism about AI infrastructure spending and the company's ability to capitalize on this growing trend. Five of the 11 main S&P 500 sectors were in the green, with renewed confidence in AI and earnings growth momentum underscoring the recent rally. As noted by Morgan Stanley's Jitania Kandhari, "Markets continue to look through these risks because the global economy and corporate earnings remain relatively resilient."
