Key facts
- US stocks closed higher Friday, driven by SpaceX's market debut and hopes for a US-Iran peace deal.
- SpaceX shares surged 19.2% on their first day of trading, reaching a market capitalization of over $2 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 reached a record closing high.
- Oil prices fell more than 3% on renewed hopes for a US-Iran peace deal.
- US Treasury yields rose as traders monitored Middle East developments and anticipated the upcoming Federal Reserve meeting.
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 $161.11, significantly above the IPO price of $135. The company's market capitalization reached over $2 trillion, making founder Elon Musk the world's first trillionaire. The successful IPO was seen as a barometer for overall risk appetite and market health.
Wall Street's gains were also supported by hopes for a de-escalation in Middle East tensions. U.S. President Donald Trump had previously called off attacks on Iran, signaling proximity to a peace deal. While details remained unclear, a U.S. official indicated that negotiators were close to an agreement that could include Iran's commitment to neither develop nor procure nuclear weapons and reopen the Strait of Hormuz. However, Iran's foreign minister suggested nuclear issues would be discussed later and management of the Strait of Hormuz would not revert to pre-war conditions.
Despite morning declines, U.S. stocks climbed higher. The Dow Jones Industrial Average rose 0.70% to 51,202.26, the S&P 500 gained 0.50% to 7,431.46, and the Nasdaq Composite increased 0.31% to 25,888.84. MSCI's global equities index rose 1.15% to 1,112.24, and the pan-European STOXX 600 index finished up 1.88%.
In energy markets, oil futures extended Thursday's losses. U.S. crude settled down 3.23% at $84.88 a barrel, and Brent finished at $87.33 per barrel, down 3.37%. In fixed-income markets, U.S. Treasury yields rose from one-week lows, with the 10-year note yield up 1.6 basis points to 4.481%. The dollar index rose 0.05% to 99.78, while the euro dipped 0.08% to $1.1568. Spot gold fell 0.03% to $4,212.66 an ounce, while spot silver rose 0.86% to $67.93 an ounce.