The S&P 500 and Nasdaq ended Friday at fresh record highs, driven by optimism around potential U.S.–Iran peace negotiations and a strong rally in semiconductor stocks led by Intel.
Reports from Pakistani officials indicated that Iran’s foreign minister, Abbas Araqchi, was expected in Islamabad to explore the revival of peace talks. Meanwhile, White House Press Secretary Karoline Leavitt stated in an interview with Fox News that Donald Trump’s envoy Steve Witkoff and advisor Jared Kushner are set to travel to Islamabad for discussions mediated by Pakistan. Markets have rallied in recent weeks on hopes of resolving the Iran conflict and strong earnings expectations, though sentiment cooled slightly as progress remained uncertain and the Strait of Hormuz stayed closed.
On the day, the Dow Jones Industrial Average slipped 0.16% to 49,230.71. The S&P 500 rose 0.80% to 7,165.08, while the Nasdaq Composite gained 1.63% to 24,836.60. For the week, the S&P 500 added 0.55%, the Nasdaq climbed 1.5%, and the Dow declined 0.44%.
Semiconductor stocks continued their strong momentum, with the Philadelphia SE Semiconductor Index rising 4.32%, marking its 18th straight session of gains. Intel surged 23.65% to a record close after issuing a stronger-than-expected revenue outlook. Other chipmakers, including AMD and Arm Holdings, jumped around 14%, while Nvidia advanced 4.32% to another record, approaching a $5 trillion valuation. The technology sector led gains, rising 2.46%, even as markets absorbed news around DeepSeek’s upcoming model.
The S&P 500 and Nasdaq extended their winning streak to a fourth consecutive week—their longest since late 2024—while the Dow snapped a three-week run of gains.
Investor focus is now shifting to the upcoming Federal Reserve meeting, with markets looking for signals on potential rate cuts and leadership changes. The U.S. Department of Justice has reportedly closed its investigation into Fed Chair Jerome Powell, potentially clearing the path for Kevin Warsh, Trump’s nominee to lead the central bank. According to CME Group’s FedWatch Tool, markets are now pricing in a 39% chance of a December rate cut, up from 23% previously.
A solid start to earnings season has also supported equities despite geopolitical uncertainty, with first-quarter earnings growth expectations rising to 16.1%, compared to 14.4% at the beginning of April.
