U.S. Stock Indexes Close at Record Highs, Dow Leads Rally
U.S. stock indexes closed higher on Thursday, with the Dow Jones Industrial Average reaching a record close. Markets were influenced by a combination of diplomatic developments between the United States and Iran, conflicting reports on military actions, and corporate earnings.
Market Performance
U.S. indexes rose for a second consecutive session. On Thursday, the Dow Jones Industrial Average increased by 276.31 points, or 0.55%, to a record close. The S&P 500 was on track for its eighth straight weekly gain. Asia-Pacific markets opened higher on Friday, tracking Wall Street gains.
U.S.-Iran Negotiations and Military Activity
The positive market sentiment was tied to hopes for de-escalation in the Middle East. Reports indicated that Iran was reviewing a U.S. peace proposal. Secretary of State Marco Rubio stated that the U.S. is "giving talks every chance to succeed" and noted progress, but warned that military options remain available.
- President Trump's Stance: President Donald Trump stated he is willing to wait "a few days" for Iran's response to the proposal. He also stated he opposes Russia or China taking control of Iran's enriched uranium as part of any deal.
- Airstrike Reports: A U.S. official reported new airstrikes on a military site in Iran, assessed as a threat to U.S. forces and commercial shipping in the Strait of Hormuz. Following this report, oil prices rose and Asia-Pacific markets opened lower.
- Address to the Nation: President Trump was scheduled to address the nation at 9 p.m. ET to provide updates on Iran ceasefire negotiations and the future of U.S. military involvement in the region.
Oil Market
Oil prices rose about 2% in early Asian trading after three consecutive declines, amid mixed messaging on peace negotiations. Earlier, oil prices had fallen more than 5% following Secretary Rubio's comments about diplomatic progress.
- A Reuters report, citing sources, stated that Iran's supreme leader ordered enriched uranium to remain in the country, potentially complicating peace prospects.
- The International Energy Agency's chief cautioned that the oil market could enter the "red zone" by July due to dwindling inventories ahead of the peak summer travel season.
Economic and Inflation Data
Attention turned to the April inflation reading due Thursday at 8:30 a.m. ET. Minneapolis Fed President Neel Kashkari stated that inflation is "much too high" and that bringing it down remains his top priority.
Corporate and Political News
- Artificial Intelligence (AI): President Trump postponed signing an executive order on artificial intelligence, stating he "didn't like certain aspects" and needs more time for review. The order was expected to allow the U.S. government to pre-evaluate AI models for security vulnerabilities. Separately, Microsoft is in talks to supply its custom AI chips to AI firm Anthropic, following Microsoft's $5 billion commitment to the company.
- Earnings and Business Developments:
- Snowflake shares rose up to 36% after reporting strong earnings and announcing a $6 billion spending plan on Amazon Web Services for AI.
- Salesforce reported quarterly results above expectations, but full-year guidance was slightly below forecasts.
- Dell Technologies secured a $9.7 billion Pentagon software deal.