Wall Street Advances as Iran Deal Optimism Supports Market Sentiment

index Update

US equities ended Thursday’s session higher after a volatile day of trading, supported by lower oil prices and renewed optimism surrounding a potential US-Iran agreement. The Dow Jones Industrial Average climbed 276 points to close at a record high, while the S&P 500 advanced 0.2% and the Nasdaq Composite gained 0.1%. Investor sentiment improved after reports indicated that Iran viewed the latest US proposal as helping reduce differences between the two nations, while US Secretary of State Marco Rubio also noted “encouraging signs” regarding a possible agreement. Falling crude prices supported broader market momentum, with utilities, consumer discretionary, and materials sectors leading the gains, whereas energy and consumer staples lagged behind. Among major stocks, NVIDIA declined 1.8% following Earnings that failed to meet elevated market expectations, while Walmart dropped more than 7% after warning that higher fuel costs could pressure operations. Meanwhile, Apple, Amazon, and Eli Lilly posted gains during the session.

Market Movers

Among the top-performing stocks of the session, Agape ATP Corporation surged 71.77%, while Akanda Corp. rallied 61.68%. On the losing side, SU Group Holdings Limited fell 28.92%, while Intuit Inc. declined 20.02%, making them the weakest performers during the trading day.

Commodities Update

WTI crude futures traded above USD 98 per barrel on Friday, while Brent Crude moved above USD 105 per barrel after reports suggested that Iran’s Supreme Leader directed the country’s enriched uranium reserves to remain within its borders, complicating ongoing negotiations with the United States. Additional uncertainty emerged after reports that Iran and Oman were discussing a permanent toll framework for ships passing through the Strait of Hormuz, although President Donald Trump rejected the proposal and reiterated that the waterway should remain open and toll-free. Despite Friday’s rebound, oil prices were still lower for the week amid hopes that diplomatic discussions could eventually lead to an agreement. Meanwhile, gold remained above USD 4,500 per ounce and silver traded above USD 76 per ounce, as investors continued to monitor geopolitical developments, Inflation risks, and expectations for global interest rates.

Macro Updates

The US Dollar Index rose to around 99.3 on Friday, remaining close to a six-week high as investors evaluated mixed developments in the US-Iran negotiations and their impact on inflation and Monetary Policy expectations. Although Iran stated that recent proposals had helped narrow differences between both sides, concerns remained over Iran’s uranium stockpile and disagreements surrounding the Strait of Hormuz toll discussions. At the same time, minutes from the latest Federal Reserve meeting indicated that most policymakers still believe additional rate hikes could be considered if inflation remains above the Central Bank’s 2% target. However, markets largely continue to expect interest rates to stay unchanged through the remainder of the year, while traders currently see roughly a 40% probability of a 25-basis-point hike in December.

Bonds Commentary

The Yield on the US 10-year Treasury note steadied near 4.57% on Friday after declining over the previous two sessions, as investors assessed the potential inflationary and policy implications of developments surrounding the US-Iran negotiations. While Iran acknowledged progress in discussions with the US, ongoing disagreements related to uranium reserves and proposed Strait of Hormuz tolls continued to create uncertainty in global markets. In addition, Federal Reserve meeting minutes suggested policymakers remain open to further tightening if inflation pressures persist. Nevertheless, markets broadly anticipate that the Fed will maintain current Interest Rate levels for the rest of the year, despite expectations for a possible December rate increase.

Futures Update

US stock futures edged higher on Friday following two consecutive days of gains on Wall Street, supported by easing oil prices and optimism surrounding a potential diplomatic breakthrough between the US and Iran. Reports indicated that Iran considered the latest US proposal as helping reduce differences between the two countries, while Secretary of State Marco Rubio highlighted positive signs regarding ongoing negotiations. During Thursday’s regular session, the Dow Jones gained 0.55%, the S&P 500 rose 0.17%, and the Nasdaq Composite advanced 0.09%, with utilities, consumer discretionary, and materials stocks leading sector performance. Despite Volatility earlier in the week, the major US indexes remained on track to post weekly gains.

After opening lower on Thursday following the previous session’s rally, U.S. stocks recovered steadily through the day and closed higher, with the Dow posting a fresh record close. The S&P 500 gained 12.77 points (+0.17%) to end at 7,445.73, continuing its strong uptrend while holding comfortably above both the 21-day and 50-day EMAs. Volume remained stable with no clear signs of institutional selling, while RSI eased slightly from overbought levels, signaling a healthy consolidation rather than weakening momentum. After rebounding nearly 1,100 points from the April lows, the index continues to show strong bullish control and underlying market resilience.