The S&P 500 rose on Friday after investors were given a hopeful sign that peace talks between the U.S. and Iran would soon take place in Pakistan.
The broad market index traded up 0.43%, while the Nasdaq Composite added 1.05% to record high. The Dow Jones Industrial Average fell points, or 0.38%.
MS Now reported, citing a Pakistani government official, that Iranian Foreign Minister Abbas Araqchi is expected to arrive in Islamabad on Friday evening and that U.S.-Iran negotiations are likely to occur. The recent rally in oil prices lost steam following the development. U.S. West Texas Intermediate futures were last trading above $95 per barrel, while International benchmark Brent crude futures were trading above $105 a barrel.
This comes on the heels of President Donald Trump announcing Thursday that Israel and Lebanon agreed to extend their ceasefire by three weeks. The announcement followed a meeting at the White House with top U.S. officials, Trump said.
“The Meeting went very well!” the president wrote in a Truth Social post. “The United States is going to work with Lebanon in order to help it protect itself from Hezbollah,” he added, referencing the Iran-backed militia group.
The Middle East conflict has evolved into a naval standoff over the Strait of Hormuz as the U.S. and Iran have seized commercial ships. Trump said in a Thursday Truth Social post that he had ordered the U.S. Navy to “shoot and kill any boat” that is laying mines in the strait.
Given Thursday’s reversal from all-time highs for the S&P 500 and Nasdaq composite, headlines coming from the Middle East still can sway the market, even as traders attempt to look past the conflict and focus on corporate earnings reports.
Intel shares soared 24%. The chipmaker posted first-quarter earnings that beat Wall Street’s expectations and shared an upbeat forecast for its current quarter.
That adds to the rally semiconductor stocks have seen this week. On Thursday, the iShares Semiconductor ETF (SOXX) posted its 17th positive session in a row and is now pacing to end the week with a 6% gain.
For the three major averages, however, the week is shaping up to be a losing one. The S&P 500 is on track for a 0.3% decline in the period, as is the Dow. The Nasdaq has fallen 0.1% this week.
Cameron Dawson, chief investment officer at NewEdge Wealth, said she expects the market’s leadership to remain constricted.
“The real question is how the market digests the super normal growth and if it thinks it can actually continue,” Dawson added.
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