US equity markets ended the week with the S&P 500 recording its eighth consecutive weekly gain, marking its longest weekly winning streak since 2023. The strong gains were led by continued momentum in artificial intelligence-linked technology stocks, improving sentiment around US-Iran peace negotiations and resilient corporate earnings.
The Dow Jones Industrial Average rose more than 2% during the week, while the S&P 500 gained over 1%. The tech-heavy NASDAQ Composite advanced 0.5% during the period.
Markets had started the week on a weaker footing amid concerns that persistent inflationary pressures could prompt the US Federal Reserve to maintain a tighter monetary policy stance or potentially raise interest rates further.
However, sentiment improved significantly from Wednesday onward after reports suggested progress in negotiations between the United States and Iran, easing concerns that one of the key drivers of rising energy prices could eventually be resolved. Despite the optimism, uncertainty surrounding the negotiations capped the gains. US Secretary of State Marco Rubio and Iranian media both indicated signs of progress toward a possible peace agreement, although disagreements continue over Iran’s uranium stockpile and the Strait of Hormuz.
Meanwhile, on Friday, the Dow Jones Industrial Average reached a record closing high, climbing 294.04 points, or 0.58%, to close at 50,579.70. The S&P 500 gained 27.75 points, or 0.37%, to settle at 7,473.47, while the Nasdaq Composite rose 50.87 points, or 0.19%, to end at 26,343.97.
What led to the Wall Street rally?
Technology and semiconductor stocks remained among the biggest contributors to the market rally during the week as investor enthusiasm around artificial intelligence continued to support valuations across the sector.
Qualcomm shares rallied nearly 18% during the week, while strong earnings reports from Dell Technologies and HP boosted sentiment toward computer hardware makers.
Investor confidence was also supported by easing Treasury yields after a sharp rise earlier in the week.
The yield on benchmark US 10-year Treasury notes also fell 2.6 basis points to 4.558% from 4.584% late on Thursday. Earlier in the week, the 10-year yield had surged to its highest level since January 2025 amid a broader selloff in global bond markets.
Meanwhile, the US dollar remained close to six-week highs as investors monitored both geopolitical developments and the outlook for Federal Reserve policy.
Kevin Warsh was officially sworn in as Federal Reserve Chair on Friday. The dollar index, which tracks the greenback against a basket of major currencies including the euro and yen, rose 0.04% to 99.24. The euro slipped 0.06% to $1.1611 against the dollar.
Oil prices, inflation and consumer concerns remain in focus
Crude oil prices also remained volatile during the week as markets reacted to mixed signals surrounding US-Iran negotiations. US crude oil settled 25 cents higher at $96.60 per barrel, while Brent crude gained 96 cents to settle at $103.54 per barrel.
On Friday afternoon, oil prices turned higher again after investors assessed conflicting developments from negotiations mediated by Pakistan between the United States and Iran.
Although geopolitical optimism helped support equity markets, concerns around inflation and consumer spending continued to linger.
(With inputs from agencies)
