The benchmark S&P 500 and the tech-heavy Nasdaq each rallied to their third record close in a row on Friday. The blue-chip Dow marked its highest finish since late February. Investors reacted positively to Iran’s decision to open the Strait of Hormuz and the potential for a deal with the United States to end their war. Bob Doll, CEO of Crossmark, noted that concerns about oil slowing the world economy diminished.
The Nasdaq Composite gained 365.78 points, or 1.52%, to 24,468.48, marking its longest winning streak since 1992. The Dow Jones Industrial Average rose 868.71 points, or 1.79%, to 49,447.43, while the S&P 500 gained 84.78 points, or 1.20%, to 7,126.06. The S&P 500 gained 4.53% for the week, the Nasdaq rose 6.84%, and the Dow climbed 3.2%.
Energy stocks slid as oil prices tumbled, with the energy sector down 2.9%. Exxon Mobil fell 3.6%, and Chevron dropped 2.2%. Consumer discretionary was the biggest gainer, finishing up just under 2%, led by cruise operators. Royal Caribbean jumped 7.3%, while Carnival rose 7%.
Despite the positive market sentiment, some analysts cautioned about logistical challenges for shippers. Erik Bethel, general partner at Mare Liberum, highlighted issues such as high war-risk insurance premiums and potential mine hazards. Netflix was the biggest drag on the S&P, tumbling 9.7% after forecasting lower earnings. Alcoa shares ended down 6.8% after reporting disappointing first-quarter results.
