The major indices also capped off a strong month, supported by robust gains in technology stocks and easing concerns around energy prices.
The Nasdaq Composite rose 0.2% to close at 26,972.62, while the S&P 500 advanced 0.22% to 7,580.06. The Dow Jones Industrial Average gained 363.49 points, or 0.72%, to finish at 51,032.46. All three benchmarks touched new intraday record highs during the session.
The S&P 500 has now rallied nearly 20% from its March lows and recorded its ninth consecutive week of gains, marking its longest weekly winning streak since 2023 and one of the strongest such runs in recent decades.
Technology stocks remained a key driver of the advance. Shares of Dell Technologies surged 33% after the company delivered an upbeat outlook, reinforcing investor confidence in continued spending on AI infrastructure.
Investor sentiment also improved after reports suggested progress toward extending the ceasefire between the US and Iran. Markets had already gained momentum following news that negotiators from both countries had broadly agreed on a 60-day framework aimed at preserving the truce.
Although the agreement has yet to be formally finalised, reports indicate the two sides are closer to a deal than at any point since negotiations began.
President Donald Trump said he was prepared to make a final decision on the proposed arrangement, though no announcement followed a subsequent meeting with senior officials.
Adding to optimism, Treasury Secretary Scott Bessent indicated that some sanctions on Iran could eventually be eased depending on developments in the ongoing diplomatic process.
Despite the positive headlines, investors remain mindful that negotiations could still face setbacks.
“There is still a possibility that the agreement does not materialise, but current indications point toward at least a temporary extension of the ceasefire,” said Matt Maley of Miller Tabak. He added that the key question for investors is how much of the positive outcome has already been reflected in stock prices.
Analysts say the recent market rally has been supported by a combination of improving geopolitical sentiment and resilient corporate earnings.
According to Adam Turnquist of LPL Financial, easing tensions in the Middle East have provided a meaningful boost to investor confidence, while strong earnings performance has helped sustain the upward momentum in equities.
Emily Bowersock Hill of Bowersock Capital Partners said investors continue to focus on profit growth and the expanding AI investment cycle, which has helped offset concerns around geopolitical risks.
The strength in equities also highlights investors’ willingness to look beyond geopolitical uncertainty and the prospect of higher interest rates.
In the bond market, Treasury prices posted weekly gains, recovering some of the losses suffered earlier this month when concerns over rising energy costs and inflation triggered a sell-off.
Crude oil prices, meanwhile, eased from recent highs, with Brent crude settling near $92 per barrel. The decline has helped calm fears that elevated energy costs could complicate the Federal Reserve’s inflation fight.
Angelo Kourkafas of Edward Jones said softer oil prices are helping reduce inflation concerns.
However, he cautioned that with inflation remaining above the Fed’s 2% target and labour market conditions showing resilience, policymakers could become less inclined to signal further monetary easing in the coming months.
