Closing bell | Records over risk: Nasdaq, S&P scale highs on US-Iran talks buzz; Dow slips

Wall Street ended on a mixed note on Friday, with the S&P 500 and the Nasdaq Composite closing at record highs as optimism around potential US-Iran peace talks lifted investor sentiment, even as the Dow Jones Industrial Average edged lower.The broad market index rose 0.8%, while the tech-heavy Nasdaq gained 1.6%, with both benchmarks also touching fresh intraday highs during the session. In contrast, the Dow slipped about 80 points, or 0.2%, lagging its peers.

Investor sentiment was buoyed after reports indicated that diplomatic efforts between the US and Iran could soon resume. According to media reports citing a Pakistani official, Iran’s Foreign Minister Abbas Araghchi is expected to arrive in Islamabad for talks with Pakistani mediators over a possible second round of negotiations with the US, raising hopes of de-escalation in the region.
Oil prices eased following the development, offering additional support to equities. US West Texas Intermediate crude traded above $94 per barrel, while Brent crude hovered above $105 a barrel, pulling back from recent highs as fears of supply disruptions moderated.
The positive momentum also followed US President Donald Trump’s announcement a day earlier that Israel and Lebanon had agreed to extend their ceasefire by three weeks. In a social media post, Trump said the US would work with Lebanon to help it defend itself against Hezbollah, the Iran-backed militant group, signalling continued diplomatic engagement in the region.Despite the cautious optimism, geopolitical tensions remain elevated. The conflict has evolved into a naval standoff between the US and Iran over the Strait of Hormuz, a critical global oil transit route, with both sides reportedly seizing commercial vessels. Trump also reiterated a hardline stance, stating that the US Navy had been ordered to act against any threats in the strait.

Gains on Friday were further supported by a sharp rally in semiconductor stocks. Shares of Intel surged 23% after the chipmaker reported stronger-than-expected quarterly earnings and issued an upbeat forecast, extending the momentum seen across the sector this week.

The broader iShares Semiconductor ETF has also posted strong gains, reflecting sustained investor interest in chip stocks.

Every week, however, performance remained mixed. The S&P 500 is on track to end the week up about 0.6%, while the Nasdaq is set to gain around 1.5%. The Dow, meanwhile, is heading for a weekly decline of roughly 0.4%, underperforming the broader market.