Wall Street inches higher while oil prices fall on optimism over talks of Iran ceasefire extension

Wall Street’s major indexes rose Friday, continuing a streak of gains fueled by optimism over potential progress in Iran-U.S. ceasefire talks. The S&P 500 climbed 0.2% to a new all-time high for the fourth straight day, marking its seventh consecutive gain and ninth winning week since early May. The Dow Jones Industrial Average gained 0.7%, and the Nasdaq composite added 0.2%, both also reaching record levels. Tech stocks led the rally, with Microsoft surging 5.4% and Broadcom up 4.7%. Dell Technologies saw the largest gain in the S&P 500, jumping 32.8% after reporting profits well above expectations and raising its AI-driven demand outlook. Most other sectors underperformed, including Paramount Skydance (-1.9%), Amazon (-1.2%), and Costco Wholesale (-3.9%). The market’s gains came despite lingering concerns over inflation, which accelerated in April to its highest level in three years. Rising oil prices—driven by disruptions in the Strait of Hormuz, a critical shipping route—have exacerbated inflation, squeezing consumers and businesses. Oil prices eased Friday, with Brent crude falling 1.7% to $91.12 per barrel and U.S. crude dropping to $87.36, though both remain significantly higher than pre-war levels. Corporate earnings have provided some relief, with S&P 500 companies reporting a 28% profit growth in the latest quarter. However, investors remain cautious about inflation’s impact on consumer spending and the Federal Reserve’s potential interest rate decisions. The Fed has kept rates steady and is expected to maintain this stance through 2024, according to financial market projections. Wall Street’s performance reflects a delicate balance between tech-driven optimism and broader economic uncertainties, including geopolitical risks and inflationary pressures.