Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Spencer Pratt | Getty Images
Stocks around the world soared on Friday as Iranian state media reported that a proposed peace deal would reopen the Strait of Hormuz.
In Asia, Japan Nikkei Stock Average India rose 2.8% nifty 50 1.3% increase, South Korea Kospi increased by 4.6%; shanghai complex It was more than 1% higher.
European stocks also soared, and stock prices across Europe rose as well. Stocks 600 The index rose 1.8%, while most major exchanges rose about 2% in morning trading.
On Wall Street, futures trading suggested a higher opening price. S&P500 futures Approximately 0.45% is added, Nasdaq 100 futures It rose by 0.37%. Futures linked to the Dow Jones Industrial Average It rose 331 points, or about 0.65%.
Iranian state media reported that the draft Iran-US memorandum includes a commitment by the US to lift oil sanctions and a commitment by Iran to reopen the Strait of Hormuz.
Friday’s gains followed Thursday’s gains as semiconductor stocks rebounded and President Donald Trump signaled a peace deal with Iran was near.
Traders are also eyeing Elon Musk’s rocket maker SpaceX to list on the Nasdaq. SpaceX, which plans to go public under the ticker symbol SPCX, has set a fixed price of $135 per share, giving it a valuation of $1.77 trillion.
The company plans to sell 555.6 million shares, making it the largest initial public offering (IPO) in history and raising $75 billion. This is more than three times the size of Alibaba’s $22 billion offering in 2014, which is currently the largest U.S. IPO ever.
If the IPO goes as planned, it could provide a big boost to stock prices on Friday. But some investors worry that it is so large that it could put pressure on the market. Even if the market can digest these new shares of SpaceX, IPOs are known to be volatile, and Friday’s initial public offering could spark another change in leadership in the technology industry as investors find the money to fund new issuances.
“History shows that large IPOs occur during periods of strong stock market sentiment, but additional stock supply can cause indigestion,” said Douglas Bies, global equity strategist at Wells Fargo Investment Institute.
“Current geopolitical tensions combined with the upcoming midterm elections could be another reason for further market instability in the second half of the year.”
“While we remain positive on the AI theme and the information technology sector, we are not chasing this rally,” he added, noting that the sector is up 37% since April as of May 29, compared to the S&P 500, which is up 17%.
Thursday’s gains put the S&P 500 and Nasdaq Composite on track for gains this week, with the indexes on pace to gain 0.14% and 0.39%, respectively. The blue-chip Dow Jones Industrial Average followed suit, ending the week down 0.04%.
Investors will also be keeping an eye on the June Michigan Sentiment Index, which will be released Friday morning.
