U.S. stocks opened higher on Friday evening, Beijing time. Despite heightened market volatility, the S&P 500 index is on track to post a weekly gain. Investors are closely monitoring the progress of U.S.-Iran negotiations. While both sides have signaled positive developments, the issues surrounding Iran's enriched uranium stockpiles and the dispute over transit fees for the Strait of Hormuz remain significant obstacles.
The Dow Jones Industrial Average rose by 148.99 points, or 0.30%, to 50,434.65. The Nasdaq Composite increased by 99.404 points, or 0.38%, to 26,392.501. The S&P 500 gained 23.10 points, or 0.31%, reaching 7,468.82.
So far this week, the S&P 500 has risen 0.5% and is poised to record its eighth consecutive weekly gain. This would mark its longest weekly winning streak since a nine-week run that ended in late 2023.
The Dow has gained 1.5% this week, aiming for its third weekly gain in four weeks. The Nasdaq Composite is up 0.3%, looking to secure 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 surpassed 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 U.S.-Iran conflict. On Friday, both Brent crude and West Texas Intermediate crude rose by approximately 2%.
Both the United States and Iran have indicated progress in negotiations to end the war, but disagreements persist over Tehran's stockpile of enriched uranium and the transit fees for the strategically vital Strait of Hormuz.
On Thursday, U.S. Secretary of State Rubio stated there were "good signs" that an agreement to end the conflict was within reach. However, he warned that any such deal would be "unworkable" if Iran took action to permanently control shipping through the Strait of Hormuz.
Rubio remarked, "No one in the world supports a toll system. It cannot happen and is unacceptable." He added, "If we cannot reach a good deal, the President has made it clear he has other options," though he did not elaborate.
Shortly before this, Iran stated that the latest U.S. proposal had brought the warring parties closer to a peace agreement. Iran is currently reviewing the U.S. position, with both sides continuing to exchange information based on the original 14-point framework proposed by Iran several weeks ago.
In a report, Adam Crisafulli, founder of Vital Knowledge, commented, "Our view on Iran remains the same as before: the likelihood of a deal is much greater 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."
It is expected that U.S. President Trump will preside over a swearing-in ceremony on Friday for his nominee to succeed Powell as Federal Reserve Chair, Kevin Warsh.
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