U.S. stocks surged to fresh records Friday, with the Dow Jones Industrial Average closing above 50,000 for the first time as signs of progress in U.S.-Iran peace talks and a rally in technology shares lifted investor sentiment ahead of a long weekend.
"The market has been working under the assumption that there's going to be relatively near-term resolution," said Thomas Hayes, chairman at Great Hill Capital LLC. "If that assumption proves to be wrong, the market will catch down very quickly."
The Dow Jones Industrial Average rose 408.59 points, or 0.82%, to 50,697.24. The S&P 500 gained 48.08 points, or 0.65%, to 7,493.79, notching its eighth consecutive weekly gain, the longest winning streak since 2023. The Nasdaq Composite added 174.66 points, or 0.67%, to 26,467.76. Advancing issues outnumbered decliners by a 1.3-to-1 ratio on the NYSE.
The rally was underpinned by hopes for a breakthrough in negotiations to end the nearly three-month-old conflict in the Middle East, which has kept energy prices elevated. Oil prices eased on the reports, with Brent crude falling toward $102 a barrel. The easing of geopolitical tensions also sent the CBOE Volatility Index, Wall Street's "fear gauge," to a more than two-week low.
Technology shares were the standout performers. PC makers Dell Technologies and HP Inc. surged over 15% each after rival Lenovo Group reported a better-than-expected 27% jump in quarterly revenue, signaling robust demand.
The Philadelphia Semiconductor Index climbed 2.4%, with Qualcomm leading the pack with a 12% jump. Apple Inc. shares rose 2%, pushing its market capitalization above $4.5 trillion for the first time. The information technology sector was the best-performing group in the S&P 500, rising nearly 2%.
The market gains came even as investors digested a shifting outlook for monetary policy. Federal Reserve Governor Christopher Waller said the central bank should consider a possible rate hike, while President Trump swore in Kevin Warsh as the new Fed Chair.
Bond yields were steady, with the 10-year Treasury yield dipping slightly to 4.5%. However, consumer sentiment fell to a record low in May, according to the University of Michigan's survey, as households worried about the impact of high inflation.
This article is for informational purposes only and does not constitute investment advice.
