Wall Street surged on Friday, with benchmark indices closing at fresh record highs after Iran said the Strait of Hormuz would remain open, easing tensions in the US-Iran conflict.
The S&P 500 jumped 1.2% to close above the 7,100 mark for the first time, logging its third straight record finish. The Nasdaq Composite gained 1.5% to hit a new all-time high, while the Dow Jones Industrial Average rallied 1.8%, or more than 850 points.
The rally followed Iran’s assurance that the Strait of Hormuz would remain open, easing concerns over potential supply disruptions and calming markets rattled by recent US-Iran tensions.
Oil prices reacted sharply to the development. Brent crude and West Texas Intermediate futures tumbled nearly 10%, adding to the risk-on sentiment that lifted equities and other assets.
Markets have rebounded swiftly from recent geopolitical shocks, with the S&P 500 staging one of its fastest recoveries in years. The index completed a full turnaround from a roughly 9% decline to a record high in just 54 trading sessions, the quickest such rebound since 2020. From its recent lows, the climb to a new peak took just 11 sessions, the fastest pace seen in decades.
The ongoing rally has been driven by a mix of easing geopolitical concerns, strong earnings from financial firms, softer inflation trends, and renewed buying in AI-linked sectors such as semiconductors and hardware.
Momentum was also visible in broader markets. Bitcoin surged over 3% and even approached $78,000, breaking out of its recent range, while gold rose more than 1.5% and silver jumped around 4%, reflecting a broader shift toward risk assets.
The rally’s breadth remained strong, with dozens of S&P 500 stocks hitting fresh 52-week highs. Gains were led by technology and financial names, alongside select consumer and real estate stocks pushing to multi-year or record levels.
On the policy front, Donald Trump said fresh talks with Iran could begin as early as this weekend, adding that Tehran had agreed to suspend its nuclear program, further reinforcing optimism around a potential de-escalation.
In corporate action, Netflix shares dropped over 9% in after-hours trading despite beating first-quarter estimates, as investors weighed weaker forward guidance.
Overall, US markets have climbed from near-correction territory to record highs in a remarkably short span, underscoring the speed and strength of the current rebound.
