The S&P 500 rose on Friday as investors waited for a potential peace deal between the U.S. and Iran, and geared up for the SpaceX IPO.
The Dow Jones Industrials rocketed 547.23 points, or 1.1%, to move into noon hour EDT at 51,395.98.
The much broader index gathered 59.89 points to 7,454.19.
The NASDAQ changed direction and shot higher 193.59 points to 26,003.24.
Stocks had earlier turned lower, and oil came off it’s lows of the session after President Donald Trump warned in a Truth Social post that Iran “better get their act together” even as a supposed deal was on the table. West Texas Intermediate crude futures were last 1% lower at around $87 a barrel.
Iranian state media reported that the draft version of the Iran-U.S. memorandum of understanding includes a commitment from the U.S. to lift oil sanctions, as well as a commitment from Iran to reopen the Strait of Hormuz.
A peace deal could be signed in Switzerland as soon as Sunday, Bloomberg reported Friday, citing people familiar with the plans.
Friday’s moves come after a rally on Thursday, thanks to a rebound in chip stocks and President Donald Trump signaling that a peace deal with Iran was near.
Traders are also watching SpaceX, Elon Musk’s rocket maker, as it debuts on the Nasdaq. SpaceX, set to go public under the ticker symbol SPCX, has set a fixed price of $135 per share, which would put its valuation at $1.77 trillion.
The company plans to sell 555.6 million shares, amounting to a $75 billion fundraise that would be the largest initial public offering in history. It’s more than triple the size of Alibaba’s $22 billion offering in 2014, currently the biggest U.S. IPO to date.
If the IPO goes according to plan, it could offer a major catalyst for stocks on Friday. SpaceX perpetual futures suggest that the stock will pop around 30% after its debut.
A number of space-related stocks declined ahead of the IPO. Rocket Lab shares slid 9%, while shares of EchoStar — a company that has a stake in SpaceX — dropped 8%.
Prices for the 10-year Treasury faded, boosting yields to 4.48% from Thursday’s 4.46%. Treasury prices and yields move in opposite directions.
Oil prices backtracked $3.28 to $84.43 U.S. a barrel.
Gold prices moved forward $125.10 to $4,239.10 U.S. an ounce.
