NEW YORK — The S&P 500 closed at a record high on Friday, rising 1.2% to 7,126.06, as investors brushed aside ongoing conflict in the Middle East following Iran’s announcement that the Strait of Hormuz has reopened to commercial shipping.
The benchmark index broke above the 7,100 level for the first time, according to market data. The Dow Jones Industrial Average gained 868.71 points, or 1.8%, to close at 49,447.43, after briefly surging about 1,139 points earlier in the session. The Nasdaq Composite rose 1.5% to 24,468.48, marking its 13th consecutive session of gains — the longest such streak since 1992.
The rally came after Iranian Foreign Minister Abbas Araghchi said on social media that passage for all commercial vessels through the Strait of Hormuz “is declared completely open” for the remaining period of a ceasefire between Israel and Lebanon that took effect Thursday.
The reopening eased concerns over disruptions to global oil supplies through the strategic waterway, through which about 20% of the world’s oil normally passes. U.S. crude prices fell about 9% on Friday to settle at $82.59 per barrel, retreating from nearly $100 earlier in the conflict.
“A freer flow of oil could take pressure off prices not only for gasoline but also for groceries and all kinds of other products,” according to a report from the Associated Press.
However, U.S. President Donald Trump said on his social media network that the U.S. naval blockade of Iranian ports remains “in full force” until both sides reach a deal, while adding that negotiations “should go very quickly”.
The S&P 500 has gained more than 12% since hitting a low in late March, recovering from a 9% decline from its January peak following the start of the U.S.-Israeli military operations on Feb. 28. The index posted its first record-high close since Jan. 27 on Wednesday before extending gains on Friday.
The Nasdaq Composite on Wednesday notched its first all-time-high close since Oct. 29, according to Reuters. All three major indexes recorded gains for the week, with the S&P 500 up 4.5% and the Nasdaq rising 6.8%.
As of Friday’s close, the S&P 500 stood at 7,126.06, the Dow at 49,447.43, and the Nasdaq at 24,468.48.
