U.S. equities advanced on Friday, with the Nasdaq 100 Index marking its lengthiest streak of gains in over a decade, propelled by Iran's reopening of the Strait of Hormuz and remarks from U.S. President Donald Trump indicating that an agreement to end the conflict is nearing completion.
The S&P 500 closed 1.2% higher, securing its fifth consecutive day of gains. The technology-heavy Nasdaq 100 Index climbed 1.3%, achieving a 13-session winning streak—its longest since 2013. The Dow Jones Industrial Average rose 1.8%, while the VIX volatility index declined.
Oil prices moved lower, and U.S. Treasury yields fell as traders increased bets that the Federal Reserve would resume interest rate cuts within the year.
The reopening of this critical oil transit route, combined with signals that a permanent ceasefire may be imminent, fueled further market momentum.
"Markets are clearly enthusiastic about the potential sustained de-escalation in the Persian Gulf and the reopening of the Strait of Hormuz," said Steve Sosnick, Chief Strategist at Interactive Brokers.
Since the outbreak of the Iran conflict in late February, markets have experienced persistent volatility, with investors frequently adjusting expectations based on statements from U.S. leadership.
On Friday, President Trump confirmed Iran's reopening of the Strait of Hormuz and stated that a deal to conclude the war is largely finalized.
"Equities have shifted from oversold to overbought almost instantaneously," remarked Michael O’Rourke, Chief Market Strategist at JonesTrading Institutional Services.
The rapid pace of the stock market rebound has raised concerns among some strategists, who warn that current prices may no longer reflect downside risks such as rising inflation or slowing growth.
At the close, the S&P 500 was up 1.2% at 7,126.06. The Dow Jones Industrial Average gained 1.8% to 49,447.43. The Nasdaq Composite rose 1.5% to 24,468.48. The Nasdaq 100 increased 1.3% to 26,672.43. The Russell 2000 Index advanced 2.1% to 2,776.9.
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