U.S. Stocks Mixed as Tech Rally Lifts Market Sentiment
U.S. equities traded mixed on Friday, but overall sentiment remained positive. Optimism was supported by renewed hopes for diplomacy in the Middle East after Iran signaled further engagement in peace discussions. Strong earnings from Intel also boosted confidence, particularly within the technology sector.
At 11:11 ET (15:11 GMT), the S&P 500 rose 0.5% to 7,140.72 points, while the NASDAQ Composite gained 1.1% to 24,705.24, marking a new intraday record. In contrast, the Dow Jones Industrial Average declined 0.4% to 49,130.39.
Wall Street Momentum Slows After Strong Rally
Despite recent gains, market momentum has started to ease. After a strong three-week rally that saw the S&P 500 surge over 11%, the index is now on track for a modest weekly decline.
Lingering geopolitical tensions, particularly around the Strait of Hormuz, have weighed on sentiment. The ongoing U.S. naval blockade and continued disruptions in the region have limited investor confidence, even as ceasefire agreements have been extended.
Earnings Season Supports Market Stability
Investors have increasingly shifted focus toward corporate earnings, which have remained resilient. Strong quarterly results across multiple sectors have helped stabilize markets despite geopolitical uncertainty.
According to market analysts, improving fundamentals and lower expectations following recent volatility could help sustain equity valuations, even in the face of negative headlines.
Semiconductor Stocks Lead the Charge
The technology sector, particularly semiconductor companies, has been a major driver of recent gains. The Philadelphia Semiconductor Index is on track to record its longest winning streak in over three decades.
Companies such as Texas Instruments and Intel have posted strong performances. Texas Instruments shares surged nearly 20%, while Intel jumped more than 24%, driven by robust demand for AI-related chips.
AI Investment Boom Fuels Growth
The surge in semiconductor stocks reflects continued investment in artificial intelligence infrastructure. Demand for chips used in data centers and AI applications remains strong, supporting earnings growth across the sector.
Taiwan Semiconductor Manufacturing Company reported record revenue, while ASML highlighted strong demand for advanced chipmaking technology.
Intel Gains Momentum in AI Race
Although previously seen as lagging in the AI space, Intel is gaining traction. Its CPU technology is increasingly востребован as companies seek computing power for autonomous AI systems.
The company has also strengthened its position through strategic partnerships and government backing, positioning itself as a key player in the evolving AI ecosystem.
Middle East Tensions Remain a Key Risk
Geopolitical developments continue to influence markets. Donald Trump recently confirmed the extension of a ceasefire between Israel and Lebanon, although uncertainty remains due to ongoing hostilities in the region.
At the same time, tensions between the U.S. and Iran persist, particularly around the Strait of Hormuz, a critical route for global oil supply.
Diplomatic Signals Boost Market Confidence
Investor sentiment improved after Iran’s Foreign Minister, Abbas Araghchi, announced plans to visit several regional capitals, including Islamabad, Muscat, and Moscow.
The move is seen as a step toward renewed diplomatic engagement, with Pakistan continuing to play a key role as a mediator.
DOJ Drops Fed Probe, Clears Path for Leadership Change
In a separate development, the Department of Justice announced it would close its investigation into the Federal Reserve’s headquarters renovation project.
The decision removes a key obstacle for Kevin Warsh, who has been nominated to succeed Jerome Powell. The move is expected to accelerate the confirmation process and bring clarity to the central bank’s leadership transition.
