Key facts
- U.S. stocks closed higher Friday, driven by SpaceX's market debut and hopes for a U.S.-Iran peace deal.
- SpaceX shares surged 19.2% on their first day of trading, reaching a market capitalization of $2.1 trillion.
- The Dow Jones Industrial Average rose 0.70%, the S&P 500 gained 0.50%, and the Nasdaq Composite increased 0.31%.
- The Russell 2000 small-cap index achieved a record closing high.
- Major U.S. stock indexes each gained approximately 7% for the week.
U.S. stocks concluded Friday's trading session on an upward trajectory, driven by the significant market debut of SpaceX and optimism surrounding a potential peace agreement between the United States and Iran. SpaceX shares surged past their initial public offering price, marking Wall Street's largest public listing in history.
Market participants closely watched SpaceX's debut, with its shares closing up 19.2% at $160.95, significantly above the IPO price of $135. The company's market capitalization reached $2.1 trillion. This event was considered a stronger market driver than the peace hopes.
Progress in peace talks between the U.S. and Iran, with a senior U.S. administration official confirming a draft proposal liked by both sides, also helped lift sentiment. President Donald Trump had previously indicated that a deal was close. This development put pressure on oil prices and reduced concerns about higher inflation and interest rates.
Investors also looked ahead to the upcoming Federal Reserve policy meeting, with traders seeking signs of a potential rate hike. The Dow Jones Industrial Average rose 0.70%, the S&P 500 gained 0.50%, and the Nasdaq Composite increased 0.31%. The small-cap Russell 2000 index achieved a record closing high.
For the week, each of the three major indexes were up approximately 7%. However, U.S. equity funds saw their first weekly outflow in three weeks. Analysts believe some recent weakness could be due to traders trimming holdings ahead of SpaceX's debut. SpaceX is now ranked among the biggest publicly listed U.S. companies.
Shares of Tesla, another Musk company, ended 1.8% higher, while Adobe slid 6.8% after the exit of its CFO. Advancing issues outnumbered decliners on both the NYSE and Nasdaq.