US stock indexes closed mixed on Friday, with the S&P 500 and Nasdaq Composite reaching record highs while the Dow Jones Industrial Average declined. According to CNBC TV18, the S&P 500 rose 0.8% and the Nasdaq gained 1.6%, with both benchmarks also touching fresh intraday highs during the session. In contrast, the Dow slipped about 80 points, or 0.2%, lagging its peers as investors remained cautious amid uncertainty surrounding the US-Iran conflict. The positive momentum followed US President Donald Trump's announcement that Israel and Lebanon had agreed to extend their ceasefire by three weeks, with the US working to help Lebanon defend against Hezbollah. Market participants appear increasingly resilient to geopolitical noise, with investors beginning to look past near-term conflict developments and refocus on underlying fundamentals, as noted by Robert Conzo, chief executive officer at The Wealth Alliance.
Despite President Trump extending the Iran ceasefire by three weeks, peace talks appear to have stalled, with both sides hardening positions. According to CNBC TV18, reports of ship seizures in the Strait of Hormuz and the absence of Iranian negotiators have kept tensions elevated, adding a layer of uncertainty to global markets. Iran's navy reportedly seized two container ships in the Strait of Hormuz, underscoring continued risks in the critical oil transit route despite the ceasefire extension. Iranian officials have reportedly stressed that no decision has been made yet on whether to take part in a second round of negotiations in Islamabad, citing alleged US violations of the ceasefire, including the naval blockade. The Iranian president said that violations of the ceasefire by the US and the naval blockade remain the main obstacles to talks, with both Iran and the US blocking the Strait of Hormuz to gain leverage during the extended ceasefire.
Oil prices eased following reports of potential US-Iran diplomatic progress, with US West Texas Intermediate crude trading above $94 per barrel and Brent crude hovering above $105 a barrel, pulling back from recent highs. According to CNBC TV18, the ongoing conflict has disrupted oil transport through the Strait of Hormuz—a vital waterway that is typically open to international shipping—pushing prices sharply higher in recent sessions. The situation kept energy markets on edge, with Brent crude briefly crossing the $100 per barrel mark as traders priced in potential supply disruptions, adding to inflation worries already weighing on investor sentiment. Fears of supply disruptions moderated following reports that diplomatic efforts between the US and Iran could soon resume, with Iran's Foreign Minister Abbas Araghchi expected to arrive in Islamabad for talks with Pakistani mediators.
Gains on Friday were further supported by a sharp rally in semiconductor stocks, with Intel surging 23% after the chipmaker reported stronger-than-expected quarterly earnings and issued an upbeat forecast. According to CNBC TV18, the broader iShares Semiconductor ETF has also posted strong gains, reflecting sustained investor interest in chip stocks. The positive momentum extended the momentum seen across the sector this week, with semiconductor stocks leading the broader market rally despite mixed weekly performance. Despite the cautious optimism around US-Iran developments, the broader iShares Semiconductor ETF is on track to end the week up about 1.5%, while the S&P 500 is set to gain around 0.6% for the week.
The Federal Reserve is expected to wait at least six months before cutting interest rates this year, according to a Reuters poll of economists, as war-driven energy shocks reignite already elevated inflation. According to Live Mint, tensions in the Middle East are also prompting the US central bank to delay rate cuts, with war-driven energy shocks adding to inflation concerns. The closure of the key waterway keeps energy prices elevated, risking higher inflation and weighing on economic growth, creating additional headwinds for monetary policy easing. US stocks have staged a strong comeback recently, recovering all of their war-driven losses, led by a sharp revival in technology stocks, with the Nasdaq jumping 13.5% so far in April.
