U.S. stock markets opened higher on Friday evening, Beijing time. Optimism surrounding potential renewed negotiations between the United States and Iran, coupled with Intel's better-than-expected earnings report, provided a dual boost to the market.
The Dow Jones Industrial Average rose by 9.97 points, or 0.02%, to 49,320.29. The Nasdaq Composite Index increased by 157.60 points, or 0.65%, to 24,596.11. The S&P 500 Index climbed 28.08 points, or 0.40%, to 7,136.48.
Hopes are rising for a resumption of talks between the U.S. and Iran. Media reports citing a Pakistani government official indicated that Iran's foreign minister is expected to arrive in Islamabad on Friday evening, raising expectations that negotiations may take place.
This development has tempered the recent rally in oil prices. West Texas Intermediate crude futures were trading above $95 per barrel, while Brent crude futures were above $105 per barrel. In a related development, former President Trump announced that Israel and Lebanon had agreed to extend their ceasefire for an additional three weeks.
Shares of Intel surged by 24%. The chipmaker reported first-quarter profits that exceeded Wall Street forecasts and provided an optimistic outlook for the current quarter, adding further momentum to the semiconductor sector. The iShares Semiconductor ETF has now advanced for 17 consecutive trading days and is on track for a weekly gain of approximately 6%.
Despite the positive start, the three major U.S. stock indices are still poised for weekly losses. As of Thursday's close, the S&P 500 was down about 0.3% for the week, the Dow Jones had also declined by 0.3%, and the Nasdaq Composite had decreased by 0.1%.
The Chief Investment Officer of NewEdge Wealth noted that market leadership is continuing to narrow. She stated, "The market is becoming increasingly narrow. Previously, all the 'Magnificent Seven' were performing well; now, it's essentially just the semiconductor sector that is strong. The world's most cyclical industry—semiconductors—is experiencing extraordinary growth. The question is how to value this and whether the market can digest such exceptional growth."
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