The S&P 500 Index closed up 0.37% on Friday, buoyed by renewed optimism surrounding potential peace negotiations between the U.S. and Iran, while the Dow Jones Industrial Average hit an all-time high. Chipmakers and AI-related stocks led the rally, with Qualcomm surging over 11% and Workday rising more than 5% after exceeding Q1 earnings expectations and providing a positive outlook.

Despite the gains, the market faced headwinds from a downward revision of the University of Michigan’s consumer sentiment index to a record low of 44.8, alongside rising inflation expectations. Fed Governor Christopher Waller’s hawkish stance on interest rates further weighed on sentiment, suggesting that the central bank could still raise rates if inflation does not stabilize.

Market professionals should note the resilience in tech and AI sectors, as well as the mixed signals from economic indicators. The strong earnings reports provide a silver lining, but ongoing geopolitical tensions and inflation concerns could create volatility in the near term.

Source: nasdaq.com