Wall Street followed global markets higher on Friday, with the S&P 500 on track for its ninth consecutive weekly gain - the longest streak since December 2023 - as hopes for a diplomatic resolution to the Iran conflict lifted investor sentiment.
The Dow Jones Industrial Average rose 358 points to 51,027. The S&P 500 gained 19 points to 7,583. The Nasdaq Composite added 59 points to 26,978.
A tech-led rally drove gains across all three major indexes, even as they pared some of their highs before the close. Treasury yields dipped, and oil prices retreated on news that the United States and Iran have agreed in principle to extend their ceasefire and lift shipping restrictions in the Strait of Hormuz.
Sources tell Reuters the agreement has not yet been finalized by President Trump. If approved, it would open the key waterway for 60 days, giving negotiators time to reach a more substantial deal.
Crude prices fell sharply. U.S. West Texas Intermediate crude settled at $87.36 per barrel, down 1.73%. Brent crude settled at $92.05, down 1.77%.
The dollar edged lower. Gold rose 1.51% to $4,559.94 an ounce, but remains on track for a monthly decline.
Investors are also watching the Federal Reserve, with some officials considering whether to hike interest rates if inflation pressures persist. Ross Mayfield, investment strategy analyst at Baird, says any move would require a high bar.