Dow Rises 169 Points as Tech Gains Offset Iran Ceasefire Reports

The Dow Jones Industrial Average gained 169 points on Friday as strength in AI-related technology stocks offset investor concern about reports of a possible U.S.-Iran ceasefire extension and the removal of shipping restrictions through the Strait of Hormuz. The S&P 500 climbed 0.24% and the Nasdaq Composite rose 0.29% as U.S. markets opened higher in New York.

Reports indicated Washington and Tehran had reached an agreement to extend a ceasefire and lift certain limits on shipping through the strategic waterway, though the arrangement had not received presidential approval at the time. Iran’s armed forces launched missiles late Thursday while the framework was under review. The possibility that tensions could remain contained contributed to lower energy prices.

West Texas Intermediate crude futures fell about 1% to near $87 a barrel and Brent crude slipped to roughly $91 a barrel. The declines reflected sensitivity to developments in the Strait of Hormuz, a key route for global oil shipments, and the prospect of fewer shipping constraints.

Technology and AI infrastructure companies led gains. Dell Technologies surged more than 31% after raising its full-year profit and revenue forecasts following stronger-than-expected quarterly results. Hewlett Packard Enterprise climbed about 9% and Super Micro Computer advanced roughly 10%. Identity-management firm Okta jumped more than 18% after reporting first-quarter revenue above forecasts. Those moves helped the S&P 500 move toward a ninth straight weekly gain, its longest streak since December 2023. The Nasdaq led monthly performance for May, advancing about 8%.

Retail names weighed on parts of the market. Gap shares dropped 16.6% after the company cut its annual sales forecast, and American Eagle Outfitters fell 15% after leaving its comparable sales outlook unchanged.

Investors continued to process recent economic data and Federal Reserve commentary. Data released Thursday showed inflation accelerated at the fastest pace in three years in April, and first-quarter GDP growth was revised down to an annualized 1.6%. Federal Reserve officials have said interest rates may need to remain elevated if inflation pressures persist. Money markets largely price in unchanged rates for the rest of the year, though some participants still model a 25-basis-point hike in December. Market participants planned to watch remarks from Fed officials Anna Paulson, Neel Kashkari and Mary Daly for further signals on policy.

Trading on Friday reflected a focus on corporate earnings and demand for AI infrastructure alongside short-term geopolitical developments, leaving major indexes modestly higher as investors weighed the latest reports.