4:05pm: Dow at record high
Hopes of a resolution to the Middle East conflict saw the Dow Jones finish at a record high 50,579 points, up 0.6%.
The S&P 500 added 0.4% at 7,473 points, and the Nasdaq added 0.2% at 26,343 points.
2:40pm: Market movers
- Spotify Technology SA (NYSE:SPOT) remained a top pick for Jefferies after its 2026 Investor Day highlighted a stronger-than-expected focus on products, prompting the firm to raise its price target to $600 from $540 as shares climbed nearly 8%.
- Take-Two Interactive Software Inc (NASDAQ:TTWO) received positive feedback from Wedbush Securities following quarterly results that showcased broad portfolio strength, although shares fell more than 4% after the company issued a weaker-than-expected fiscal 2027 bookings outlook.
- IMAX Corp (NYSE:IMAX) shares surged more than 14% after a report said the company is exploring a potential sale and has approached entertainment firms about a possible deal, although discussions remain in the early stages.
- Estee Lauder Companies Inc (NYSE:EL, XETRA:ELAA) shares rose about 10% after the company confirmed it had ended discussions with Puig regarding a possible business combination, removing uncertainty surrounding the proposed transaction.
- Snail Inc (NASDAQ:SNAL) said it is expanding its international development network through partnerships with three Poland-based studios as part of its broader strategy to grow its global gaming footprint.
- American Resources Corp (NASDAQ:AREC) announced that affiliated company ReElement Technologies formed a joint venture with POSCO International to develop a $200 million rare earth refining and permanent magnet manufacturing operation in the United States.
- EnWave Corp (TSX-V:ENW, OTC:NWVCF, FRA:E4U) said it signed a technology evaluation and license option agreement with one of the world’s largest multinational food companies to test its REV technology at commercial scale across multiple food categories.
- Zoom Technologies Inc (NASDAQ:ZOOM) reported first-quarter earnings and revenue that beat Wall Street expectations, driven by stronger enterprise demand and rapid adoption of its AI features, sending shares up roughly 12%.
- Workday Inc (NASDAQ:WDAY) shares gained 8% after the company posted better-than-expected first-quarter earnings and revenue and raised its full-year profitability outlook.
1:30pm: Spending under pressure
Wells Fargo expects upcoming US data to show a resilient but increasingly strained consumer environment, with inflation continuing to pressure household finances.
The bank forecasts the PCE deflator rose 0.4% in April, which would weigh on real purchasing power and keep income growth subdued.
In housing, Wells Fargo sees continued weakness, projecting new home sales slowed to around a 669,000 annualized pace in April as higher mortgage rates and softer labor market conditions dampen demand.
12:15pm: Consumer sentiment hits all-time low
US consumer sentiment sank to a record low in May, with the University of Michigan’s index falling to 44.8 from 48.2 in April, well below economists’ expectations of 48.2.
The weak reading highlights growing concerns among consumers over persistent price pressures and the broader economic outlook.
IG analyst Chris Beauchamp said the data shows Americans remain worried about inflation, while confidence continues to deteriorate. "Markets are now expecting the Fed to move rates higher by the end of the year, and while this is perhaps a little premature, the evidence continues to point towards resurgent inflation over the summer.”
11:10pm: IMAX surges on sale rumors
IMAX Corp (NYSE:IMAX) is exploring a sale and has approached entertainment companies as potential buyers, the Wall Street Journal reported on Friday, sending shares of the premium cinema operator up 14.2%.
The process is early and may not lead to a deal, according to the report.
IMAX has seen its share of domestic box office sales grow to 5.2% last year from 3.2% in 2019, as premium large-format screenings gain ground with moviegoers.
Wedbush identified private equity, Netflix, Apple and Sony as the most likely potential suitors.
The analysts said IMAX is on track to surpass 50% EBITDA margins by 2028.
10:00am: Stocks open green
Wall Street opened higher on Friday, with the Dow Jones Industrial Average surging more than 300 points to breach the 50,700 mark as investors welcomed signs of progress in diplomatic talks aimed at ending the nearly three-month-old conflict between the United States and Iran.
The Dow climbed 341 points, or 0.7%, to 50,627, while the S&P 500 gained 36 points, or 0.5%, to 7,481. The Nasdaq rose 74 points, or 0.3%, to 26,367 as traders headed into the Memorial Day holiday weekend in a more optimistic mood.
Geopolitical tensions continue to keep energy markets on edge. Brent crude was fluctuating around $104 a barrel after remaining elevated for weeks amid uncertainty surrounding the conflict in Iran.
Investors are also watching developments in Washington, where Kevin Warsh is set to be sworn in as the new Federal Reserve chair by President Donald Trump later Friday.
On the corporate side, shares of Workday jumped after the software company posted earnings that topped Wall Street expectations. Zoom Communications also moved higher after raising its guidance, while Estée Lauder gained after scrapping a merger with Spain’s Puig.
Still ahead, investors will be watching fresh US economic data due at 10am ET, including the final May consumer sentiment reading and April’s report on leading economic indicators.
8am: Wall Street set for higher open
US stock futures are pointing to a modestly positive open on Friday, with investors keeping faith that a US-Iran peace deal could be within reach - even as oil prices climb again and Nvidia's post-earnings slide raises a few questions.
Dow futures are up 0.3%, with S&P 500 and Nasdaq futures both gaining around 0.1%, building on Thursday's solid session when the Dow hit another record high, gaining 0.6%, the S&P added 0.2%, and the Nasdaq edged up 0.1%.
The oil market is sending mixed signals. Brent crude has climbed 2.5% to $105.13 a barrel, and WTI is up 1.6% at $97.91, reversing Thursday's dip despite the broadly optimistic mood on peace talks. Iran's Supreme Leader reportedly resisted demands to remove enriched uranium from the country, though Tehran said Washington's latest proposal had helped narrow differences. President Trump, for his part, said he'd be prepared to wait "a couple of days" for a response.
Saxo UK's Neil Wilson says markets are pricing for Middle East de-escalation and strong AI-led earnings growth - but Nvidia is complicating that narrative. Despite revenues of $81.62 billion beating consensus of $78.86 billion, and guidance of $91 billion for the current quarter, the stock slipped around 2%.
Interactive Investor's Richard Hunter put the broader picture well: "Despite the debilitating effects of conflict, elevated oil prices, inflationary impacts, the possibility of monetary tightening, dubious consumer sentiment and concerns over technology valuations and AI spending in general, US markets continue to scale fresh highs. It remains to be seen whether the reaction to Nvidia's latest results is the canary in the coalmine."
The University of Michigan's consumer sentiment and inflation expectations data, landing later on Friday, will remind everyone that war-driven price pressures have not gone away.