U.S. stocks advanced in early trading on Friday evening Beijing time, with the three major indices all reaching new intraday record highs. The S&P 500 approached the 7600 mark, while the Nasdaq Composite Index made history by surpassing 27,000 points for the first time. Oil prices declined as traders closely monitored the Middle East conflict and a fragile ceasefire agreement between Iran and the United States.
The Dow Jones Industrial Average rose 150.79 points, or 0.30%, to 50,819.76. The Nasdaq Composite gained 158.98 points, or 0.59%, to 27,076.45. The S&P 500 increased by 31.69 points, or 0.42%, to 7,595.32.
During early Friday trading, U.S. West Texas Intermediate crude futures fell more than 2% to $86.89 per barrel. Brent crude also dropped 2% to $91.80. This followed reports of mutual airstrikes on each other's air bases by the U.S. and Iran on Thursday, alongside news that U.S. President Trump was considering a potential extension of the ceasefire agreement.
In the previous trading session, the stock market reached new highs after the U.S. and Iran reached an agreement, with Iranian negotiators consenting to a 60-day memorandum of understanding to extend the ceasefire.
However, Kate Moore, Chief Investment Officer at Citi Wealth Management, suggested that the market's momentum to new highs may be driven more by robust corporate earnings growth than headlines about Middle East tensions.
She stated, "I think a significant portion of the rally since the March lows has been due to the market pricing in an expectation that issues will eventually be resolved, but the scope and timing of that resolution clearly remain unknown. I do believe the real driver pushing the market higher is the earnings strength in the technology sector... company after company has demonstrated this performance during this earnings season."
As the final trading day of May, all three major U.S. stock indices are on track to close the week with gains. The technology-heavy Nasdaq Composite is leading with an increase of over 2% for the week. The S&P 500 has risen more than 1%, while the blue-chip Dow Jones Industrial Average has gained less than 1%.
For the month of May, all three major indices are also poised to finish higher. The S&P 500 is up nearly 5%, the Dow has gained 2%, and the Nasdaq has performed more strongly, set to rise approximately 8% for the month.
Shares of Dell Technologies surged after the laptop manufacturer raised its full-year guidance and reported first-quarter revenue and profit that exceeded expectations.
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