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US stocks closed the week with strong gains, supported by optimism over US-Iran peace talks and robust performance in technology and consumer sectors. The S&P 500 is on track for its eighth consecutive weekly advance, the longest streak since late 2023. Investors focused on earnings, bond yields and geopolitical developments throughout the week.
The S&P 500 rose 0.65% on Friday, bringing weekly gains to approximately 1.1%. The index is poised for eight straight weeks of growth, a streak not seen since December 2023. The Dow Jones Industrial Average added 0.63% to 50,600, reaching a near-record intraday high, while the NASDAQ Composite increased 0.67% to 26,468.
Markets benefited from positive movements in US-Iran talks. Secretary of State Marco Rubio noted ‘slight progress’ in negotiations, though key differences remain. Investors responded to signals that the conflict may not escalate, easing earlier concerns about energy disruptions and inflationary pressure.
Corporate earnings provided additional support for equities. Workday Inc. reported first-quarter results above expectations rising 9.4% in premarket trading. Estee Lauder also surged 12% following the termination of merger talks with Puig Brands SA.
Furthermore, Take-Two Interactive gained 2.5% as the company confirmed the November launch date for Grand Theft Auto VI.
Technology and semiconductor stocks also contributed to market strength. NVIDIA stock inched up 0.5% despite a minor decline the previous day. The Philadelphia Semiconductor Index rose 1.5%, reflecting sustained investor interest in AI-driven growth and data center infrastructure.
US Treasury yields declined on Friday, easing concerns over borrowing costs. The 10-year bond fell to around 4.54%, while the 30-year bond traded near 5.07%. Bond market volatility earlier in the week had pressured equities, with the 10-year yield touching a one-year high and the 30-year reaching pre-financial crisis levels.
Analysts noted that US authorities are closely monitoring the bond market. “The administration is well-focused on the bond market, even more than equities in my view, so they won’t allow the curve to steepen much further,” said Andrea Gabellone, head of global equities at KBC Securities.
Global equities mirrored the US rally. Europe’s Stoxx 600 advanced 0.5%, driven by semiconductor stocks such as STMicroelectronics NV and ASML Holding NV. In Asia, the regional index rose 0.9%, with Japan’s Nikkei 225 outperforming. Brent crude oil rebounded 1.9% to trade near $105 per barrel, though prices remain below earlier weekly highs.
Investors showed restraint despite ongoing geopolitical uncertainty. Market strategists cited a combination of robust corporate profitability and stable capital spending.
“We’ve got the biggest capital spending boom since the financial crisis,” said Guy Miller, chief market strategist at Zurich Insurance. “That’s leading to record corporate profitability; we are in this virtuous circle where it’s generating profitability for other suppliers, other companies too.”
The S&P 500’s ongoing streak is supported by strong earnings, AI-driven technology growth, and geopolitical developments in the Middle East. While challenges remain in negotiations with Iran, investors continue to monitor the situation closely. Treasury yields and inflation indicators are expected to remain key factors influencing market movement.
US markets are entering the long Memorial Day weekend with subdued volatility. Ten of the 11 major S&P 500 sectors advanced, led by healthcare. The CBOE Volatility Index hovered near a two-week low at 16.64, reflecting calmer trading conditions heading into the holiday period.
The week’s developments indicate sustained market momentum driven by corporate results and cautious optimism over diplomatic progress, keeping investors focused on both earnings and macroeconomic indicators.
Also Read: Stock Market Updates: Nifty 50, Sensex Likely to Open High Amid Positive Global Cues
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