US equity markets posted modest gains as optimism grew around the possibility of a US-Iran agreement, which helped ease earlier losses and improve market sentiment. The S&P 500 closed up 0.17%, leaving it just 0.74% below its all-time high and on track for an eighth consecutive weekly gain, the longest streak since 2023 [1][2]. The Dow Jones Industrial Average advanced 0.55% to a new record high, while the Nasdaq 100 added 0.09% [1][2]. Futures for the Dow Jones, S&P 500, and Nasdaq 100 continued to rise during European hours, up 0.26%, 0.28%, and 0.34% respectively [2].
The market's positive tone was attributed to improved sentiment regarding US-Iran talks, with lower crude oil prices reflecting easing supply concerns [2]. US Secretary of State Marco Rubio noted encouraging signs about a possible deal, though senior Iranian officials clarified that no agreement has been officially reached but acknowledged that the gaps between the two countries have narrowed [2].
Defensive sectors and blue-chip stocks led the advance, with IBM surging 12.43% after the US administration agreed to award the company $1 billion to build a foundry for quantum computing chips [1]. In contrast, some tech and consumer names underperformed: Nvidia fell 1.77% after its earnings release, Intuit dropped 20.02%, and Walmart declined 7.27% (or 6.85% according to [2]) following soft earnings and cautious forecasts [1][2]. Deere also slid 5.22% after news of a class-action lawsuit related to its "right-to-repair" practices [2].
Asian markets followed the positive trend, with Japan's Nikkei rising 2.29% and most other major indices up around half a percent. S&P and Nasdaq futures were also higher, as were European Stoxx futures (+0.82%) [1]. In Europe, the previous session was less positive, with Germany's DAX down 0.53% and France's CAC 40 down 0.39%, though the STOXX 600 managed a slight gain (+0.04%) [1].
Looking ahead, traders are monitoring upcoming earnings reports from companies such as BJ’s Wholesale Club, Booz Allen Hamilton, CoinShares, and Richtech Robotics [2]. Additionally, US President Donald Trump is set to swear in Kevin Warsh as the new chair of the Federal Reserve, whose economic philosophy favors lower interest rates and a systematic reduction of the Fed's balance sheet, though the central bank remains divided on the path of future rate hikes [2].
CONCLUSION
US equities advanced modestly on optimism surrounding potential progress in US-Iran talks, with defensive sectors and blue-chip stocks leading gains. While some major companies faced sharp declines on earnings news, overall market sentiment remained positive, supported by easing oil prices and strong futures performance. Investors are now focused on upcoming earnings and Federal Reserve leadership changes for further direction.