The S&P 500 is heading for its longest streak of weekly wins since 2023 as hopes that the US and Iran are moving closer to a peace deal and unrelenting enthusiasm for artificial intelligence keep on fueling global stocks.
While futures for the US benchmark trimmed an early advance of as much as 0.5%, the S&P 500 remained on track for an eighth straight week of gains. Brent rebounded 2.6% to above $105 a barrel, but remained lower for the week. Treasuries rose, with the 10-year yield down two basis points to 4.55%.
Markets are heading into the weekend on a quieter note, shaking off worries that severe disruptions to energy flows from the Middle East could stoke inflation. Signs that neither Iran nor the US is looking to widen their conflict and growing appetite for a broader group of AI beneficiaries have kept volatility subdued despite conflicting reports around peace talks.
“We’ve got the biggest capital spending boom since the financial crisis,” said Guy Miller, chief market strategist at Zurich Insurance. “That’s leading to record corporate profitability; we are in this virtuous circle where it’s generating profitability for other suppliers, other companies too.”
US Treasuries are gaining for a third straight day after yields earlier this week tested multiyear highs. Investors said US authorities remain highly attentive to borrowing costs and that current levels will sharpen the White House’s resolve to find a resolution in the Middle East.
“The administration is well-focused on the bond market, even more than equities in my view, so they won’t allow the curve to steepen much further,” said Andrea Gabellone, head of global equities at KBC Securities.
Workday Inc. was among the standout movers in premarket trading, jumping 9.2% after a first-quarter beat. Estee Lauder Cos. advanced 10% following the collapse of a proposed combination with Puig Brands SA. US-listed Chinese stocks fell after China’s securities regulator announced plans to penalize three cross-border brokerages.
“The market is fully aware that headlines will remain volatile, and while oil needs to react for practical reasons, equities have probably moved on,” said Geoff Yu, senior macro strategist at BNY. “The lack of an agreement does not imply re-escalation, so the focus for now will stay with earnings and data.”
