Major U.S. stock indexes rose during the holiday-shortened week, with several benchmarks closing at record highs, as investor sentiment was supported by rising hopes for a U.S.-Iran peace agreement, falling oil prices, and continued momentum in artificial intelligence-linked stocks. The Nasdaq Composite led among the major benchmarks, buoyed in part by AI optimism, while the Russell 2000 and the S&P 500 Indexes also posted solid gains. The Dow Jones Industrial Average lagged but still rose 0.9%. Early reports that the U.S. and Iran were moving toward a 60-day ceasefire extension and a reopening of traffic through the Strait of Hormuz helped push oil prices lower and supported risk appetite through much of the week. The narrative was complicated by reports of fresh U.S. strikes on Iranian targets, but investor sentiment remained positive through the end of the week amid reports suggesting that a deal was largely done and waiting on final approval. On the macro side, US GDP growth was revised down while durable goods orders surge. U.S. Treasuries generated positive returns as yields decreased across most maturities, partially in response to declining oil prices and reported progress in the U.S.-Iran negotiations. The pan-European STOXX Europe 600 Index advanced 0.14% Japan's equity markets surged to historic highs during the week, with the Nikkei 225 Index rising 4.72% and the broader TOPIX Index gaining 1.66%.
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