Advertisment
Stocks rose on Friday as SpaceX’s opening pop bolstered sentiment, with investors hoping for the arrival of a potential peace deal between the U.S. and Iran.
The Dow Jones Industrials rocketed 353.54 points, or 1.1%, to finish the week at 51,202.29.
The S&P 500 index gathered 37.17 points to 7,431.47.
The NASDAQ hopped 79.18 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.
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.
Elon Musk’s rocket maker debuted on the NASDAQ at $150 per share, trading under the symbol SPCX. That’s above its $135 IPO price. The stock soared more than 20% shortly after it opened and was last trading up 19%.
The run-up in SpaceX boosted investor confidence, leading some on Wall Street to believe other stocks may be undervalued.
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%.
The tech trade was mixed on the day, but had been ramping up recently on hopes for a successful debut for SpaceX, which is also an AI appetite proxy because of its xAI unit. Artificial intelligence darling Nvidia were little changed, while others such as Advanced Micro Devices and Alphabet were higher by 4% and 1%, respectively. Broadcom and AI software stock Palantir Technologies were in the red, as were Amazon and Microsoft.
Prices for the 10-year Treasury faded, boosting yields to 4.49% from Thursday’s 4.46%. Treasury prices and yields move in opposite directions.
Oil prices backtracked $3.37 to $84.34 U.S. a barrel.
Gold prices moved forward $114.40 to $4,228.40 U.S. an ounce.
