US equity benchmarks closed at fresh record highs on Friday after Iran announced it had reopened the Strait of Hormuz to non-Iranian commercial vessels, easing fears of energy-driven stagflation. The S&P 500 and Nasdaq 100 climbed 1.5%, while the Dow advanced more than 2%.
Crude oil and refined product prices slumped after Tehran and President Trump signaled that tanker traffic through the key Persian Gulf chokepoint had been freed up, clearing the way for a normalization of energy supplies following the disruption caused by the conflict. Hopes for a broader accord were further buoyed when the President said Iran would halt its nuclear program.
Risk appetite revived, fueling a rally in AI-linked and other speculative growth stocks. Amazon, Microsoft, Nvidia, and Tesla each gained more than 1%, while Oracle jumped 3%. By contrast, Netflix sank more than 10% after issuing Q2 guidance that missed market expectations.
The three major indices were on pace to notch a third straight week of gains, each exceeding 3%.
