US sharemarkets finished higher on Friday as investors welcomed a strong debut from SpaceX and growing optimism that a peace agreement between the United States and Iran could be finalised within days.
The S&P 500 rose 0.5% to close at 7,431.46, while the Nasdaq Composite gained 0.31% to 25,888.84. The Dow Jones Industrial Average added 353.51 points, or 0.7%, to finish at 51,202.26.
Investor sentiment was supported by the successful listing of SpaceX, which began trading on the Nasdaq at US$150 per share, above its US$135 issue price. Shares surged more than 20% shortly after listing before closing around 19% higher at US$161.
The strong debut reinforced confidence in the broader technology sector and highlighted continuing investor appetite for artificial intelligence-related opportunities through SpaceX’s association with xAI.
Market participants are now closely watching whether the successful float encourages a wave of other high-profile listings in coming months.
Technology stocks delivered a mixed performance. Nvidia edged higher, while Advanced Micro Devices gained 4.7% and Alphabet rose 0.5%. Broadcom, Amazon, Meta Platforms and Palantir Technologies finished lower.
Australian Market Outlook
Australian shares are expected to open higher as investors respond to easing oil prices, gains on Wall Street and growing expectations that the Iran war may be nearing a resolution.
S&P/ASX 200 futures are up 39 points, or 0.4%, to 8,853.
Market sentiment is likely to remain sensitive to developments surrounding a potential US-Iran agreement, with investors awaiting confirmation of any formal signing and details surrounding the reopening of the Strait of Hormuz.
Lower oil prices may provide support for sectors sensitive to inflation and interest rates, while technology stocks could benefit from the positive reception to the SpaceX listing.
The Reserve Bank of Australia meets on Tuesday and is widely expected to leave the cash rate unchanged at 4.35% following three consecutive rate increases.
Investors will also be assessing whether the recent decline in energy prices eases pressure on central banks globally and improves the outlook for economic growth in the second half of the year.
