US stocks today: S&P 500, Nasdaq end at fresh records as oil prices tumble

The benchmark ​S&P 500 and the tech-heavy Nasdaq each rallied to their third record close in a row on Friday, while the blue-chip Dow marked its highest finish since late February, as investors cheered Iran's decision to open the Strait of Hormuz and were optimistic it could reach an agreement with the ‌United States. Iranian Foreign ⁠Minister Abbas ⁠Araqchi said in a post on X that passage for all commercial vessels through the Strait of Hormuz was "completely open" for the remainder of the 10-day ​truce between Israeli forces and Iran-backed Hezbollah agreed to in Lebanon. This followed U.S. President Donald Trump's announcement that talks could take place this weekend ​between Tehran and Washington and that they could soon secure a peace agreement to end the Iran war, which has left thousands dead since the U.S. and Israel launched joint strikes on Iran on February 28.

With traders increasingly confident that an end ​to the war is near, U.S. crude oil prices tumbled more than 11%, alleviating ⁠inflation concerns. The ‌Strait of Hormuz is a vital waterway for global energy transportation.

"The concern about oil putting the ​world into a ​slowdown diminishes as it's onward and upward for a possible final deal," said Bob Doll, CEO ⁠of Crossmark, who noted that while there is still no signed U.S.-Iran deal, "it looks ​like it's heading in a direction that's enough for the market to go up." The small-cap ​Russell 2000 outperformed large-cap gains and also registered a record closing high after it earlier hit its first intraday record high since the war erupted.


"Energy prices coming down has a bigger impact on small caps because they have tighter margins," said Nick Johnson, CIO of Willis Johnson & Associates, adding, "it's starting to become clear that the U.S. and Iran want to see this behind them."


ENERGY STOCKS SLIDE AS OIL TUMBLES

Among the S&P 500's 11 major industry sectors, energy was the biggest loser, with Exxon ‌Mobil and Chevron among the benchmark's top drags.

The biggest gainer was consumer discretionary, with cruise operators Carnival and Norwegian Cruise Line gaining sharply. Industrials was also a top gainer, with airline stocks such as United Airlines advancing ​sharply.

According to preliminary ​data, the S&P 500 gained 84.64 ⁠points, or 1.20%, to end at 7,125.12 points, while the Nasdaq Composite gained 363.57 points, or 1.51%, to 24,466.27. The Dow Jones Industrial Average rose 864.23 points, or 1.78%, to 49,442.95.

CAUTION PERSISTS ON STRAIT PASSAGE Still, some analysts cautioned that logistical challenges remain for ​shippers.

"Ship operators still face astronomical war-risk insurance premiums, potential mine hazards, and uncertainty about enforcement," said Erik Bethel, general partner at maritime-focused investment firm Mare Liberum. The S&P's biggest drag was from Netflix, which tumbled after forecasting current-quarter earnings below expectations. The company also announced the exit of co-founder and longtime Chairman Reed Hastings, ending a 29-year tenure.

Alcoa shares fell after the aluminum producer reported first-quarter profit and revenue below analysts' estimates, citing elevated costs and softening demand.