US Stocks Close Higher as Crude Prices Fall Amid Speculation of Extended US-Iran Truce

U.S. Stocks Rise as Hopes for Iran Peace Deal Grow

U.S. stocks followed world shares higher on Friday, driven by renewed hopes of progress toward a peaceful resolution to the Iran war. The narrow, tech-led rally lifted all three major U.S. stock indexes to modest gains, while benchmark U.S. Treasury yields dipped for a fourth straight session.

The S&P 500 notched its ninth straight weekly gain, its longest winning streak since December 2023, and logged a monthly advance. The Dow Jones Industrial Average rose 363.68 points, or 0.72%, to 51,032.65, and the Nasdaq Composite rose 55.15 points, or 0.21%, to 26,972.62. The S&P 500 rose 16.49 points, or 0.22%, to 7,580.12.

European shares also closed modestly higher and scored gains for the month, marked by hopes for a deal that would reopen the Strait of Hormuz. The waterway's closure has strained the global economy and agitated markets. MSCI's gauge of stocks across the globe rose 5.75 points, or 0.51%, to 1,130.47.

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Emerging market stocks rose 25.91 points, or 1.50%, to 1,750.60. Brent crude oil prices eased as the market awaited confirmation that the United States and Iran have extended their truce. U.S. crude fell 1.73% to settle at $87.36 per barrel, while Brent settled at $92.05 per barrel, down 1.77% on the day.

Treasury yields were lower for the fourth straight session, closing out a week in which reported progress in U.S.-Iran peace negotiations fueled market optimism. The yield on benchmark U.S. 10-year notes fell 1.4 basis points to 4.441%, from 4.455% late on Thursday. The 30-year bond yield fell 0.3 basis point to 4.9817%, from 4.985% late on Thursday.

The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 2.9 basis points to 3.996%, from 4.025% late on Thursday. The dollar dipped in the wake of reports of a U.S.-Iran interim agreement. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.1% to 98.90.

Against the Japanese yen, the dollar strengthened 0.01% to 159.26. Gold got a boost from ceasefire optimism but remained on course for a monthly drop. Spot gold rose 1.18% to $4,545.00 an ounce. U.S. gold futures rose 0.98% to $4,543.60 an ounce.

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