S&P 500, Nasdaq Shrug off War Gloom as Intel Powers Chip Rally

The S&P 500 climbed and the Nasdaq scaled an intraday record on Friday, supported by renewed hopes for U.S.-Iran negotiations to end the war and a searing rally in Intel shares.

Iran’s foreign minister, Abbas Araqchi, was expected in the Pakistani capital Islamabad on Friday ​to discuss proposals for restarting peace talks with the U.S., Pakistani government sources said.

That gave markets some relief at the end of a week overshadowed by a stalemate, with the U.S. maintaining its naval blockade of Iranian ports while Iran seized ships attempting to pass through the Strait of Hormuz.

“Both sides are incentivized to end this quickly. They want to move on. It’s just going to take time and so we’re trying not to get too focused on the day-to-day changes,” said Jack Herr, senior investment analyst at GuideStone Funds.

Semiconductors, one of the market’s key pockets of resilience, continued to shine. The Philadelphia SE Semiconductor Index gained 4.3% and was on track to extend its winning run to 18 consecutive sessions.

Intel, which hit a record high and was last up 23.4%, was the biggest gainer on the index following a better-than-expected revenue forecast for the second quarter.

Rivals AMD and Arm also climbed over 15% each. Nvidia rose 5% and was set for a closing record.

The information technology index added 2.3% and was the biggest boost to the benchmark. Tech stocks also shrugged off DeepSeek’s preview of its highly awaited new model.

At 11:52 a.m. ET, the Dow Jones Industrial Average fell 85.40 points, or 0.17%, to 49,224.92, the S&P 500 gained 53.25 points, or 0.75%, to 7,161.65 and the Nasdaq Composite gained 365.49 points, or 1.50%, to 24,804.12.

The S&P 500 and the Nasdaq were cruising toward their fourth consecutive week of gains, their longest streak since October 2024. The blue-chip Dow, on the other hand, was set to end a three-week winning run.

Fed Meeting Awaited

Attention is also shifting to the Federal Reserve meeting next week, which will be scrutinized for clues on rate cuts and the central bank’s leadership succession.

The U.S. Justice Department is closing its investigation into Fed Chair Jerome Powell, clearing an obstacle to the confirmation of Kevin Warsh, Trump’s pick to lead the central bank.

U.S. rate futures on Friday priced in a 34% chance of easing by the end of the year, up from about 23% late on Thursday, according to LSEG estimates.

Strong earnings from a series of corporations also offered some support. Yet with the results taking into account just one month of the war disruption, some investors have questioned how reliable they are as a guide to what lies ahead.

Oil prices remain the biggest source of uncertainty, as Brent crude futures are still around 44% above pre-war levels because of disruption in the crucial Strait of Hormuz shipping route.

Still, some see the pullback as a buying opportunity, arguing that valuations have become more compelling.

“U.S. equities are seen as more immune to the oil shock than other countries. The magnitude of oil price movement itself is much lower now, comforting equity investors,” said Manish Kabra, U.S. equity strategist at Societe Generale.

Advancing issues outnumbered decliners by a 1.42-to-1 ratio on the NYSE and by a 1.37-to-1 ratio on the Nasdaq.

The S&P 500 posted 32 new 52-week highs and four new lows, while the Nasdaq Composite recorded 96 new highs and 65 new lows.

—

(Reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Devika Syamnath and Maju Samuel)

The post S&P 500, Nasdaq Shrug off War Gloom as Intel Powers Chip Rally appeared first on GV Wire.