US stocks continued to advance during Friday's midday trading session, with the Dow Jones Industrial Average climbing more than 400 points. The S&P 500 index is on track to post a gain for the week. Investors are closely monitoring the progress of US-Iran negotiations. Separately, US President Donald Trump presided over the swearing-in ceremony for Kevin Warsh as the new Chairman of the Federal Reserve.
The Dow Jones Industrial Average rose 417.20 points, or 0.83%, to 50,702.86. The Nasdaq Composite gained 163.22 points, or 0.62%, reaching 26,456.32. The S&P 500 index increased by 47.71 points, or 0.64%, settling at 7,493.43.
So far this week, the S&P 500 is up 0.5%, positioning it for an eighth consecutive weekly gain. This would mark the longest such streak since a nine-week run that concluded at the end of 2023.
The Dow Jones Industrial Average has risen 1.5% this week, aiming for its third weekly gain in four weeks. The Nasdaq Composite is up 0.3%, poised for its seventh weekly advance 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 note briefly surpassed 5.19% earlier this 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 war. 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 conflict, but disagreements persist over Tehran's stockpile of enriched uranium and proposed tolls for passage through 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, but he warned that any such deal would be "unworkable" if Iran took steps to permanently control shipping through the Strait of Hormuz.
"Nobody in the world supports a toll regime. It cannot happen and is not acceptable," Rubio said, adding, "If we cannot get a good deal, the president has made it clear he has other options." He did not elaborate.
Shortly before this, Iran indicated that the latest US proposal had brought the warring parties closer to a peace agreement. Iran is currently reviewing the US proposal, with both sides continuing to exchange information based on a 14-point original framework Iran proposed several weeks ago.
In a report, Adam Crisafulli, founder of Vital Knowledge, stated, "Our view on Iran remains the same as before: the probability of a deal is far greater than no deal, but this is already priced in, and the conflict will have a stagflationary impact for at least the next few quarters."
On Friday, US President Donald Trump presided over the swearing-in ceremony for Kevin Warsh as Chairman of the Federal Reserve, placing him at the helm of the central bank that must navigate a turbulent economy, with the president having very specific expectations regarding interest rates.
The 56-year-old Warsh will become the 11th Chair of the Federal Reserve in the modern banking era, succeeding Jerome Powell, who served for eight years.
Powell, who refused to cut interest rates as quickly or as deeply as Trump desired, has been a frequent target of the president's ire. Powell will continue to serve on the Federal Reserve Board as a Governor, making him the first former Fed Chair in nearly eight decades to take this step.
Friday's swearing-in ceremony marks Warsh's second tenure at the Federal Reserve. He previously served as a Governor from 2006 to 2011, a period during which the central bank worked alongside Treasury officials to rescue the economy from the global financial crisis.
Although Warsh assisted in the Fed's efforts, he later criticized the central bank for allowing crisis-era policies to persist and for expanding its mandate beyond price stability and low unemployment. For instance, he has pointed to previous efforts addressing climate change and social inequality as examples of mission creep and has pledged to reduce the central bank's influence on markets.
Comments