The Dow Jones Industrial Average surged to a fresh all-time high, while the S&P 500 edged higher, as optimism around a potential ceasefire in the Iran war boosted market sentiment. This 'ceasefire trade' was fueled by U.S. President Donald Trump's statement that he would be 'honored' to meet Iran's Supreme Leader Ayatollah Mojtaba Khamenei if a deal could be reached. However, Iran-backed Hezbollah rejected the U.S.-backed ceasefire terms, demanding a full Israeli withdrawal before any agreement could hold [1].
Oil prices declined sharply on the back of these developments, with Brent crude futures dropping 2.8% to close at $95.03 per barrel and West Texas Intermediate (WTI) futures falling 3.1% to settle at $93.04 per barrel on Thursday. Both benchmarks continued to slide in Friday's Asia trading session [1].
Despite the positive momentum in the broader market, the Nasdaq slipped nearly 0.1% as Broadcom shares tumbled about 15% after the company missed revenue expectations. This negative performance in chip stocks spread to Asian markets, dragging key indexes lower. In related tech news, Nvidia CEO Jensen Huang is set to testify before the Senate Banking Committee next week regarding the company's China sales and U.S. export controls, following an invitation from Senator Elizabeth Warren. TSMC Chairman Che-Chia Wei addressed shareholders, emphasizing the company's efforts to meet demand and avoid supply chain bottlenecks, while also signaling a willingness to raise prices [1].
In the cryptocurrency market, bitcoin continued its decline, briefly dipping below $62,000 before stabilizing near $63,719. This marks bitcoin's lowest level since the Iran war began, erasing all gains accumulated during the conflict [1].
CONCLUSION
The Dow's record high reflects renewed optimism over a potential ceasefire in the Iran war, while falling oil prices and a sharp decline in Broadcom shares highlight ongoing volatility in energy and tech sectors. Bitcoin's continued slide underscores broader market uncertainty. Investors remain focused on geopolitical developments and upcoming regulatory scrutiny of major chipmakers.