4:20pm: Easing tensions
Markets finished the session on a strong note, with major US indexes extending their winning streak as geopolitical tensions showed fresh signs of easing.
The Dow Jones Industrial Average jumped 1.8%, or about 850 points, to close at 49,447. The S&P 500 rose 1.2% to 7,126, while the Nasdaq Composite gained 1.5% to finish at 24,468. All three benchmarks notched a third straight record close in what’s shaping up to be a powerful risk-on rally.
The main driver today was renewed optimism around US-Iran diplomacy. Iran said the Strait of Hormuz remains open for now, a development that helped calm fears over potential supply disruptions in one of the world’s most critical oil transit routes. Traders took that as an early signal that tensions may be de-escalating rather than escalating.
Adding to the momentum, reports suggested that peace talks between the US and Iran could take place as early as this weekend. Separately, President Trump said Iran has agreed to suspend its nuclear program, according to Bloomberg reporting, further fuelling hopes of a broader diplomatic breakthrough.
Put together, the tone shift was enough to keep buyers firmly in control, with investors leaning into risk assets as uncertainty around the Middle East appeared to ease.
3:30pm: Proactive news headlines
- Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) plans to raise up to C$2 million via a private placement to fund near-term obligations and work commitments in Türkiye.
- Medicus Pharma (NASDAQ:MDCX) has applied to the U.S. Food and Drug Administration for orphan drug designation for its SkinJect therapy targeting basal cell carcinoma in patients with Gorlin Syndrome.
- HIVE Digital Technologies Ltd (TSX-V:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) priced $100 million in zero-coupon exchangeable senior notes to fund GPU purchases, data centre expansion and other corporate needs.
- Premier African Minerals Ltd (AIM:PREM, OTC:PRMMF) shares jumped after reporting progress on installing a flotation plant at its Zulu Lithium and Tantalum Project in Zimbabwe.
- Metals One PLC (AIM:MET1, FRA:HT7, OTCQB:MTOPF) advanced toward acquiring a South African gold asset via its stake in Lions Bay Resources following creditor approval of a rescue plan for Barbrook Mines.
- Orthocell Ltd (ASX:OCC, OTC:ORHHF) achieved its first U.S. military surgical use of its Remplir nerve repair product after gaining system-wide approval across defense and veterans’ hospitals.
2:30pm: Market movers
- Amneal Pharmaceuticals Inc shares rose after UBS initiated coverage with a Buy rating, citing a recent pullback as an attractive entry point and stronger relative growth prospects.
- Airline stocks rallied as easing geopolitical tensions—following Iran’s move to keep the Strait of Hormuz open—helped push oil prices lower and improve sector sentiment.
- Netflix Inc (NASDAQ:NFLX, XETRA:NFC)shares fell about 10% as solid results were overshadowed by weak near-term guidance, limited full-year upgrades and leadership changes despite continued long-term growth potential.
- Pensana PLC secured an initial $15 million investment tranche from Cascade Natural Resources to advance its Angola-based Longonjo project and broader mine-to-magnet strategy.
12:55pm: Sliding oil propels stocks
"Crude futures prices fell sharply - dropping over 10% to below $86 per barrel and reaching near five-week lows - after Iran signalled a significant de-escalation in geopolitical tensions," Axel Rudolph, Chief Technical Analyst at investing and trading platform IG noted.
"The move, alongside comments from President Donald Trump suggesting Iranian concessions could support a broader peace agreement, fuelled expectations that the nearly 50-day disruption to energy flows may be nearing an end.
"Additional downward pressure on oil prices came from reports that the US could release $20 billion in frozen Iranian funds in exchange for enriched uranium stockpiles, with further negotiations anticipated.”
12:00pm: Airline stocks take flight
Airline stocks rallied on Friday after oil prices eased following Iran’s announcement that the Strait of Hormuz would remain open.
United Airlines Holdings Inc (NASDAQ:UAL, XETRA:UAL1) rose 11.1%, American Airlines Group Inc (NASDAQ:AAL, XETRA:A1G) gained 9%, Delta Air Lines Inc (NYSE:DAL) added 7.1%, Alaska Air Group (NYSE:ALK) surged 14%, and Southwest Airlines Co (NYSE:LUV) climbed more than 10% as lower fuel cost expectations and improved risk sentiment lifted the sector.
The decline in oil prices added further relief for airline operators, which are highly sensitive to fuel costs, contributing to the sharp gains across the sector.
10:50am: Netflix stumbles
Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares dropped about 10% on Friday after analysts said solid results were overshadowed by weaker-than-expected near-term guidance, limited full-year upgrades and Reed Hastings’ planned board exit, even as longer-term growth prospects remain intact.
Investors were disappointed with the company’s second-quarter revenue outlook and a lack of upward revision to full-year targets, despite strong underlying engagement trends and continued momentum in its advertising business.
Bank of America analysts described the quarter as “back to business,” noting that management reaffirmed its core priorities of expanding entertainment value, improving technology, and increasing monetization.
A key overhang for investors was the announcement that co-founder Reed Hastings will not stand for re-election to the board when his term expires in June. Analysts said the governance change added to investor caution in an already sensitive quarter.
9:55am: Optimism builds
Stocks kicked off the session on a strong note Friday, with all three major indexes climbing as easing geopolitical tensions and a sharp drop in oil prices helped buoy sentiment.
The Dow Jones jumped 1.4% to 49,264, while the S&P 500 rose 0.9% to 7,102 and the Nasdaq gained 1.1% to 24,356, building on recent momentum.
Energy markets were a major focus at the open, with US benchmark West Texas Intermediate crude tumbling nearly 11% after Iran’s foreign minister signaled that the Strait of Hormuz would remain open during the remaining days of the Israel-Lebanon ceasefire, easing supply concerns.
“Optimism is building as we move into the weekend,” XTB’s Kathleen Brooks noted.
“A ceasefire between Iran and Israel has come into effect today, and Donald Trump has suggested that the next round of peace talks between the US and Iran could take place this Sunday.
“Of course there are risks that could see the Strait close once more, but we think now that Iran has reopened the Strait then the chance of them closing it again is minimal, as they also need their oil to flow through the Strait to boost revenues.”
Meanwhile, Netflix shares fell around 10% at the open despite posting stronger-than-expected earnings, as investors reacted to softer guidance. The streaming giant also saw a leadership shift, with co-founder Reed Hastings announcing his exit, adding another layer of uncertainty for markets to digest early in the session.
8am: Positive open ahead
US equity futures are pointing higher across the board this morning, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all indicated to open in positive territory as investors build on a positive week for global markets.
The mood on Wall Street remains firmly upbeat, driven by a combination of easing geopolitical tension in the Middle East and a rotation back into beaten-up technology stocks, particularly software names that had lagged the broader market rally.
Ahead of the open, futures for the Dow Jones are up 0.4%, while those for the S&P 500 and the Nasdaq are 0.2% are 0.1% higher, respectively.
The S&P 500 and Nasdaq both closed at fresh all-time highs on Thursday, extending what has been a standout week for US equities. The Nasdaq has now logged 12 consecutive daily gains - its longest winning streak since 2009 - and is up more than 5% for the week alone. The S&P 500 has added 3.3% over the same period.
Saxo Markets strategist Neil Wilson summed up the prevailing mood succinctly: "War is over - that's the message from the markets as the direction of travel seems towards peace and agreement, even if reopening the Strait of Hormuz may take longer. But mainly it's about earnings and rotation back into some beaten-up tech - particularly software - stocks."
It's light on company reports today after Netflix Inc (NASDAQ:NFLX, XETRA:NFC) was the headline act on Thursday. Revenue reached $12.3 billion, up 16% year-on-year. EPS of $1.23 smashed the forecast of $0.79 by more than 55%. Despite the beat, shares are down 10% in pre-market trading, partly due to the announcement that co-founder Reed Hastings will exit the board in June, and slightly soft Q2 guidance. The company maintained full-year revenue growth guidance of 12%-14% and reiterated its target of roughly doubling advertising revenue to around $3 billion.