US stocks closed higher on Friday as investors welcomed signs of progress toward a potential peace agreement between the United States and Iran, while SpaceX’s blockbuster market debut added to positive sentiment across Wall Street.
The Dow Jones Industrial Average rose 353.51 points, or 0.7%, to close at 51,202.26.
The S&P 500 gained 0.5% to finish at 7,431.46, while the Nasdaq Composite added 0.31% to end at 25,888.84.
Investor optimism was supported by reports suggesting that negotiations between Washington and Tehran were moving closer to a resolution.
A senior US administration official said a draft proposal had been agreed upon by both sides, while Iranian state media reported that a draft memorandum of understanding included a US commitment to lift oil sanctions and an Iranian commitment to reopen the Strait of Hormuz.
Bloomberg reported that a peace deal could be signed in Switzerland as soon as Sunday.
SpaceX debut captures Wall Street’s attention
Much of Friday’s market focus centered on Elon Musk’s SpaceX, which made its long-awaited debut on the Nasdaq under the ticker symbol SPCX.
The stock opened at $150 per share, above its initial public offering price of $135.
Shares surged more than 20% shortly after trading began and ultimately closed up 19% at $160.95.
The strong debut valued SpaceX at more than $2 trillion and cemented its position among the largest publicly traded companies in the United States.
Analysts noted that only about 3% to 4% of SpaceX shares are expected to be available for trading, contributing to intense investor demand.
Iran peace hopes support broader market sentiment
Market sentiment also improved as investors assessed developments surrounding a possible end to the conflict between the United States and Iran.
“The reported progress in peace talks helped to lift sentiment,” said Jake Dollarhide, chief executive officer of Longbow Asset Management.
“There’s still hope for a peace deal. Trump called off the attacks … Third parties are confirming a peace deal is happening.”
Dollarhide added that easing geopolitical tensions could reduce concerns about inflation and interest rates by placing downward pressure on oil prices.
Oil prices remained lower on Friday, with West Texas Intermediate crude futures trading roughly 3% lower at around $84 per barrel.
Later in the session, Pakistan Prime Minister Shehbaz Sharif said that a “final, agreed upon text” of a deal had been reached, helping major indexes recover from earlier weakness.
Investors look ahead to Fed meeting
Investors are now turning their attention toward next week’s Federal Reserve policy meeting, which will be the first chaired by Kevin Warsh.
While technology stocks delivered mixed performances, several AI-related names remained in focus.
Advanced Micro Devices gained 4%, while Alphabet added 1%. Nvidia was little changed, while Broadcom, Amazon, Microsoft and Palantir Technologies finished lower.
Despite concerns earlier in the week about technology-sector weakness and fund outflows, Friday’s gains reflected renewed investor confidence driven by both geopolitical developments and one of the largest public market debuts in history.
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