US-Iran Talk Optimism Causes Stocks to Reach Record Highs – US Market Wrap
Stocks rose to all-time highs on hopes that the United States and Iran would return to the negotiating table, as did the market following Intel’s blowout forecast and the conclusion of an inquiry into Federal Reserve Chair Jerome Powell.
The S&P 500 rose about 1% on Friday, marking its longest weekly climb since 2024. President Donald Trump will send two envoys to Pakistan to meet with Iranian officials. US crude fell to approximately $94. Treasury yields fell after the Justice Department’s decision on Powell potentially cleared the way for Warsh to be confirmed as the next Fed chairman, and traders increased their bets on interest rate reduction.
White House Press Secretary Karoline Leavitt confirmed that special envoy Steve Witkoff and the president’s son-in-law, Kushner, will leave on Saturday for meetings this weekend.
According to the New York Times, Iranian Foreign Minister Araghchi expects to meet with the US team and respond in writing to a peace proposal.
Traders have been keenly monitoring the activities of both delegations for clues as to whether peace negotiations will take place, hoping for a resumption of traffic through the critical Strait of Hormuz. Despite geopolitical concerns, robust corporate results and an otherwise resilient economy have boosted stocks.
