Midday Trading: Nasdaq and S&P 500 Reach New Intraday Highs

At midday trading on Friday in the U.S., major stock indices were mixed, with the Nasdaq and S&P 500 reaching new intraday record highs. Investors are closely monitoring hopes for renewed negotiations between the U.S. and Iran, as well as Intel's earnings report. Reports indicate that an Iranian delegation is expected to meet first with Pakistani officials and will not engage with the U.S. side immediately.

The Dow Jones Industrial Average fell by 60.14 points, or 0.12%, to 49,250.18. The Nasdaq Composite rose by 363.74 points, or 1.49%, to 24,802.24. The S&P 500 increased by 54.02 points, or 0.76%, to 7,162.42.

Earlier on Friday, the Nasdaq reached a high of 24,815.21, while the S&P 500 climbed to 7,164.45, both setting new intraday records.

According to media reports citing Pakistani government officials, Iran’s foreign minister is expected to arrive in Islamabad on Friday evening, raising hopes for potential U.S.-Iran talks.

This news has led to a cooling of recent gains in oil prices. West Texas Intermediate crude futures traded above $95 per barrel, while Brent crude futures traded above $105 per barrel. Earlier, former President Trump announced that Israel and Lebanon had agreed to extend a ceasefire by three weeks.

However, reports on Friday indicated that the Iranian delegation is likely to hold talks with Pakistan first and will not engage with U.S. representatives for the time being.

The Middle East conflict has escalated into a maritime standoff in the Strait of Hormuz, with both the U.S. and Iran detaining commercial ships. On Thursday, Trump stated that he had ordered the U.S. Navy to "open fire and sink any vessels laying mines in the strait."

Shares of Intel surged by 27%, becoming a major driver of the S&P 500's gains. The chipmaker reported first-quarter earnings that exceeded Wall Street expectations and provided an optimistic outlook for the current quarter. This added further momentum to the semiconductor sector’s rally this week. The iShares Semiconductor ETF has risen for the 17th consecutive trading day and is on track for an 11% weekly gain.

Despite these gains, the three major indices are set for a mixed weekly performance. The S&P 500 is largely unchanged for the week, while the Dow has declined by 0.6%. The Nasdaq, however, has advanced by 0.7%.

The Chief Investment Officer of NewEdge Wealth noted that market leadership continues to narrow. "The market is becoming increasingly concentrated. While the 'Magnificent Seven' previously performed well, the current rally is largely driven by the semiconductor sector. The world’s most cyclical industry is experiencing extraordinary growth. These stocks are projected to achieve 100% earnings growth this year. The key questions are how to value them and whether the market can sustain such exceptional growth."