On Friday, the S&P 500 Index closed up 1.20%, the Dow Jones Industrial Average rose 1.79%, and the Nasdaq 100 gained 1.29%, marking new all-time highs for the S&P 500 and Nasdaq 100. This rally was driven by speculation of an impending deal to end the US-Iran war, which led to a significant 11% drop in crude oil prices, easing inflation concerns and causing the 10-year T-note yield to fall to 4.24%.
Negotiations between the US and Iran, potentially involving the release of $20 billion in frozen Iranian assets, are scheduled to continue in Pakistan this weekend. President Trump noted that Iran has made key concessions, fostering optimism for a peace agreement, especially as Israel and Lebanon recently agreed to a 10-day ceasefire. In addition, Q1 earnings season has started strong, with 81% of S&P 500 companies beating estimates.
Airline and cruise line stocks soared due to falling fuel costs, while energy stocks fell sharply alongside crude oil prices. Bitcoin also saw a rise of over 3% to reach a 2.5-month high, boosting cryptocurrency-exposed stocks across the market.
