US Stock Markets See Ninth Consecutive Weekly Gain, Led by Tech Sector to New Heights

US Stock Markets End Week at Record Highs

The US stock markets wrapped up the holiday-shortened trading week on a high note, extending one of their strongest rallies in recent years. Easing geopolitical tensions, lower oil prices, supportive comments from Federal Reserve officials, and continued strength in technology stocks all contributed to a boost in investor sentiment.

The major US indices, including the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite, all registered gains for the week. The Dow Jones Industrial Average advanced 0.72%, while the S&P 500 rose 0.22% and the Nasdaq Composite added 0.20%. The gains marked the S&P 500's ninth consecutive week of advances.

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On Friday, the S&P 500 gained 16.43 points to close at 7,580.06, marking its fourth consecutive record closing high. The Dow Jones Industrial Average climbed 363.49 points to 51,032.46, while the Nasdaq rose 55.15 points to finish at 26,972.62. The tech-heavy Nasdaq 100 also gained 0.4%, while the Dow rose 0.7%.

The rally came despite lingering concerns that the fragile peace process in the Middle East could unravel. However, investors chose to focus on signs of progress in negotiations between the United States and Iran, which helped calm fears around energy supply disruptions and inflation.

Growing optimism surrounding ceasefire negotiations between the United States and Iran was a major driver of the market's gains. Reports suggested that both countries had agreed to extend their ceasefire and lift restrictions on shipping through the strategically important Strait of Hormuz, although US President Donald Trump had yet to formally approve the agreement and Iranian state media said the deal had not been finalized.

The prospect of smoother energy flows through the region pushed oil prices lower and eased inflation concerns. Global Brent crude prices fell towards the $87 per barrel mark during the week, while on Friday the August Brent crude contract declined 1.7% to settle at $91.12 per barrel. US crude oil for July delivery also dropped 1.7% to $87.36 per barrel.

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Lower oil prices helped support bond markets as well. The yield on the benchmark US 10-year Treasury note eased to 4.44% from 4.45% a day earlier and has now declined for four consecutive sessions. The 30-year Treasury yield also edged lower to 4.9817%.

However, the dollar weakened amid reports of progress in the US-Iran talks. The dollar index slipped 0.1% to 98.90, while the euro gained 0.1% to $1.1663.

The rally in technology stocks was another major reason for the rise, continuing to be the biggest force behind Wall Street's record-breaking run. The technology sector within the S&P 500 surged more than 15% in May, even as most other sectors in the benchmark index declined.

One of the standout performers was Dell Technologies, whose shares soared nearly 30% after the company raised its sales outlook well above Wall Street expectations. The company cited approximately $60 billion in expected revenue from AI servers as a key growth driver.

Investors were also looking out for any update on the Federal Reserve policy. Markets are currently expecting the Federal Reserve to keep interest rates unchanged at its next meeting and potentially throughout the remainder of the year. While lower rates could support economic growth by reducing borrowing costs, policymakers remain cautious as inflation pressures persist.