US stock indexes surged to 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 each rose 0.7%, while the Dow advanced more than 1%. Crude oil and refined product prices slumped after both Iran and President Trump confirmed that tanker traffic through the key Persian Gulf chokepoint had resumed, setting the stage for a normalization of energy supply following the conflict-related disruption.
Improved risk sentiment fueled a rally in AI-related and high-growth names: Amazon, Microsoft, Nvidia, and Tesla all gained more than 1%, while Oracle jumped 3%. By contrast, Netflix slid more than 10% after its Q2 guidance missed expectations, and Truist Financial also traded lower after reporting earnings. With these moves, all three major US equity benchmarks were on pace to log a third consecutive week of gains in excess of 3%.
