Wall Street opened sharply higher on Friday, building on a record-setting rally as easing geopolitical tensions in West Asia lifted risk appetite.
The Dow Jones Industrial Average jumped over 500 points, or 1.1%, at the open. The S&P 500 advanced 0.6%, while the Nasdaq Composite climbed 0.9%, extending gains after both indices closed at fresh highs in the previous session.
The rally comes as sentiment improves following a breakthrough on the geopolitical front. Iran announced that the Strait of Hormuz is “completely open” for commercial vessels during the ongoing ceasefire period, easing concerns around a key global oil chokepoint.
The move follows a 10-day ceasefire agreement between Israel and Lebanon, announced by President Donald Trump, who has also signalled that the broader conflict with Iran could be nearing an end. Trump said the war “should be ending pretty soon” and described the situation as “going along swimmingly,” while earlier noting that a deal with Tehran is “very close.”
Markets have reacted swiftly to the de-escalation signals, with all three major indices now firmly in positive territory for the week.
Also read: Bulls rule premarket: Dow futures up 200 pts, S&P and Nasdaq extend gains as peace talks progress
The risk-on mood was also evident in broader market participation. The small-cap-heavy Russell 2000 hit a fresh all-time high in early trade, crossing the 2,750 mark and surpassing its previous peak from January. The index has rebounded about 14% since late March, outpacing the S&P 500 over the same period.
On the corporate front, Netflix weighed on sentiment in after-hours trade, with the stock sliding more than 9% despite a first-quarter earnings beat, as investors flagged a weaker-than-expected outlook.
Attention now turns to the financial sector, with Truist Financial, State Street, and Fifth Third Bancorp set to report earnings before the bell, offering further cues on the strength of the US economy.
