US Stocks Rise in Sync with Global Equities as Crude Prices Fall Amid Reports of Extended US-Iran Truce
Global Stocks Hit Fresh Record High as U.S. and Iran Move Closer to Peace Negotiations
U.S. stocks followed world shares higher and crude prices retreated on Friday as investors neared the end of a holiday-shortened week with renewed hopes of progress toward a peaceful resolution to the Iran war. A narrow, tech-led rally lifted all three major U.S. stock indexes to modest gains, and Treasury yields dipped as markets prepared to turn the page on a week and month marked by a tug-of-war between fears that air strikes could shatter a fragile truce and signs that Washington and Tehran are moving closer to the negotiating table.
The S&P 500 is poised to notch its ninth straight weekly gain, its longest winning streak since December 2023. All three indexes are set to register monthly advances. Even so, the indexes had pared from session highs as the closing bell drew near.
| Index | Friday's Close | Monthly Change |
|---|---|---|
| S&P 500 | 7,583.61 | 0.26% |
| Dow Jones Industrial Average | 51,027.94 | 0.71% |
| Nasdaq Composite | 26,978.21 | 0.23% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The United States and Iran had agreed to extend their ceasefire and lift shipping restrictions as peace negotiations proceed, sources told Reuters, but U.S. President Donald Trump had yet to approve the deal which, according to Iranian state media, has not yet been finalized. If the memo of understanding is approved by President Trump and the Strait of Hormuz is re-opened, the market may see a more substantive agreement in the coming 60 days.
The three-month-long conflict has put upward price pressure on inflation, which threatens to grow less transitory and more established the longer the war drags on. U.S. Federal Reserve officials are now mulling the possibility of hiking interest rates to counter that growing risk.
| Treasury Yield | Friday's Close | Change from Thursday |
|---|---|---|
| 10-year notes | 4.437% | -1.8 basis points |
| 30-year bond | 4.9796% | -0.5 basis points |
| 2-year note | 4% | -2.5 basis points |
The dollar dipped, and remained on course for a small weekly loss 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 0.11% to 98.89, with the euro up 0.12% at $1.1665.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Currency | Friday's Close |
|---|---|
| Euro | $1.1665 |
| Japanese yen | 159.23 |
Gold got a boost from ceasefire optimism but remained on course for a monthly drop. Spot gold rose 1.51% to $4,559.94 an ounce.
Investor Takeaway
US stocks are expected to continue their upward trend as investors remain optimistic about a peaceful resolution to the Iran war.
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