S&P 500 Extends Weekly Gains, Poised for Longest Rally Since 2024

Stocks Post Record-Breaking Run Amid Hopes for Iran Deal

Equities kicked off the month on a positive note, with the S&P 500 on track for a fifth straight week of gains. The rally is a continuation of a 10% surge in April, marking a record-breaking run. Apple Inc. led the charge, climbing on a surprisingly strong revenue forecast.

The positive sentiment is also driven by signs of economic strength and hopes for a deal to end the Iran war. Oil prices fell on reports that Iran delivered a new proposal to the US amid diplomatic efforts to turn a fragile ceasefire into lasting peace. The latest development came via Pakistan, where Tehran relayed its latest position to Washington through the state-run Islamic Republic News Agency.

The fate of the key Strait of Hormuz lies at the heart of the stalemate between Iran and the US. Both countries have signaled that they are waiting for the other to move first before they agree to ease restrictions on traffic. A ceasefire agreement would be a market positive, while a resumption of attacks would be a substantial negative.

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In other economic news, two Federal Reserve officials dissented over this week's policy statement. They argued that it was no longer appropriate to signal the next move as likely to be an interest-rate cut. Instead, they advocated for a policy outlook that signals that the next rate change could be either a cut or a hike, depending on how the economy evolves.

The yen steadied, but traders remained on watch for signs of further action by Japanese authorities after intervention triggered the currency's sharpest rally in three years.