S&P 500 and Dow Jones close at all-time highs amid optimism over potential Iran settlement and strong earnings season.
Major U.S. stock indices surged to record levels on Friday, with the S&P 500 closing at 7,473 and the Dow Jones Industrial Average at 50,579. The Nasdaq also reached a new high of 26,343, while the Russell 2000 rose to 2,869. The rally was driven by hopes for a diplomatic resolution with Iran and a reopening of the Strait of Hormuz, easing geopolitical tensions.
Earnings season contributed to the gains, with 85% of companies surpassing Wall Street expectations. Treasury yields showed mixed movement, though intermediate maturities saw increased buying. Futures pointed higher ahead of a holiday-shortened trading week, extending the market’s momentum.
Analysts cautioned that the market appears overbought, advising investors against chasing further gains. Despite the optimism, concerns linger about the sustainability of the rally amid elevated valuations.