US sharemarkets rose on Friday as easing Treasury yields supported investor sentiment, helping Wall Street close out another positive week despite heightened volatility tied to bond markets and the Iran war.
The Dow Jones Industrial Average gained 294.04 points, or 0.58%, to finish at 50,579.70, reaching a fresh intraday and closing record high. The S&P 500 rose 0.37% to close at 7,473.47, while the Nasdaq Composite added 0.19% to finish at 26,343.97.
Although all three major indices ended higher, markets retreated from session highs as investors remained cautious heading into the weekend amid uncertainty surrounding negotiations between the United States and Iran.
Investor attention remained fixed on diplomatic efforts to end the Iran war after Reuters reported that a Qatari delegation had travelled to Tehran in coordination with the United States to help secure an agreement.
Qualcomm was among the strongest performers, rising almost 12% on Friday and extending its weekly gain to more than 18%.
Wall Street also completed another strong week overall. The S&P 500 advanced 0.9% for the week, recording its eighth consecutive weekly gain and its longest winning streak since late 2023. The Dow rose 2.1% for the week, while the Nasdaq added 0.5%.
Australian Market Outlook
Australian shares are expected to remain volatile as investors assess renewed optimism surrounding a possible agreement between the US and Iran to end the war and reopen the Strait of Hormuz.
SPI futures previously pointed to a decline of around 0.7% at Monday’s open before President Donald Trump said on Truth Social that an agreement between the United States, Iran and other parties had been “largely negotiated”.
Any progress towards reopening the Strait of Hormuz is expected to ease pressure on oil prices and bond yields, which surged to decade highs last week amid fears of prolonged inflation and tighter monetary policy.
However, market strategists remain cautious about the durability of any agreement given unresolved issues surrounding Iran’s nuclear program, sanctions relief and control of the Strait of Hormuz.
