U.S. stocks advanced in early trading on Friday, with the Dow Jones Industrial Average reaching a new intraday record high. Despite heightened market volatility, the S&P 500 remained on track for a weekly gain. Investors are closely monitoring developments in US-Iran negotiations. While both sides have signaled progress, key obstacles remain, including the fate of Iran's enriched uranium stockpile and disputes over transit fees in the Strait of Hormuz.
The Dow Jones Industrial Average rose 336.20 points, or 0.67%, to 50,621.86. The Nasdaq Composite gained 83.02 points, or 0.32%, to 26,376.11. The S&P 500 increased 32.30 points, or 0.43%, to 7,478.02.
For the week so far, the S&P 500 is up 0.5%, positioning it for an eighth consecutive weekly gain. This would mark its longest weekly winning streak since a nine-week rally that ended in late 2023.
The Dow has gained 1.5% this week, on pace for its third weekly advance in four weeks. The Nasdaq Composite is up 0.3%, poised for its seventh weekly gain in the past eight weeks.
Market volatility has intensified this week as investors grapple with a sharp rise in long-term Treasury yields. The yield on the 30-year Treasury briefly climbed above 5.19% earlier in the week, reaching its highest level since before the financial crisis, before retreating to 5.09% on Thursday.
Oil prices have also been volatile as traders assess the prospects for a resolution to the US-Iran conflict. On Friday, both Brent crude and West Texas Intermediate crude rose approximately 2%.
Both the United States and Iran have indicated progress in talks to end the war, but disagreements persist over Tehran's stockpile of enriched uranium and transit fees for the strategically vital Strait of Hormuz.
US Secretary of State Marco Rubio stated on Thursday that there were "good signs" an agreement to end the conflict was within reach. However, he warned that any such deal would be "unworkable" if Iran took steps to permanently control shipping through the Strait of Hormuz.
"No one in the world supports a toll regime. It cannot happen and is not acceptable," Rubio said. He added, "If we cannot get a good deal, the President has made clear he has other options," without providing further details.
Shortly before this, Iran stated that the latest US proposal had brought the warring parties closer to a peace agreement. Iran is currently reviewing the American proposal, with both sides continuing to exchange information based on a 14-point original framework Iran presented weeks ago.
Adam Crisafulli, founder of Vital Knowledge, noted in a report: "Our view on Iran remains unchanged: the probability of a deal is significantly higher than no deal, but this is already reflected in prices, and the conflict will have a stagflationary impact for at least the next few quarters."
President Trump is expected to preside over a swearing-in ceremony on Friday for his nominee to replace Jerome Powell as Federal Reserve Chair, Kevin Warsh.
Comments