S&P 500, Nasdaq Hit Record Highs as Oil Prices Slide

S&P 500, Nasdaq, Dow Hit Record Highs as Oil Slump Boosts Market Sentiment

U.S. stocks rallied to fresh record highs on Friday, with the S&P 500, Nasdaq, and Dow Jones Industrial Average advancing as easing geopolitical tensions in the Middle East pushed oil prices sharply lower and lifted investor sentiment.

Optimism grew after Iran signaled progress toward a potential agreement with the United States and confirmed the reopening of the Strait of Hormuz for commercial shipping during a temporary truce. The development raised hopes for a de-escalation in the conflict, which has disrupted global energy markets in recent weeks.

The decline in oil prices—down more than 11%—helped ease inflation concerns, providing a strong boost to equities. The S&P 500 and Nasdaq both notched their third consecutive record close, while the Dow reached its highest level since late February.

Sector performance was mixed, with energy stocks leading losses due to falling crude prices. Meanwhile, consumer discretionary and industrial stocks outperformed, supported by gains in cruise operators and airline companies.

By the close, the S&P 500 rose 1.20%, the Nasdaq climbed 1.51%, and the Dow surged 1.78%.

Despite the optimism, some analysts warned that challenges remain regarding safe and consistent passage through the Strait of Hormuz, keeping a degree of caution in the market outlook.