Written by Caroline Valetkevitch and Stefano Rebaudo
NEW YORK/MILAN, May 22 (Reuters) – Major stock indexes rose and Treasury yields fell on Friday as investors weighed the chances of an imminent deal to end the US-Israeli war in Iran.
Oil prices have received much uncertainty surrounding the Iran talks.
US Secretary of State Marco Rubio said the United States has seen some progress on the deal with Iran but more work is still needed. Political efforts have intensified to find an end to the conflict that began in late February.
Iran’s foreign minister met with Pakistan’s interior minister on Friday to discuss proposals to end the US-Israel war, Iranian media reported.
On Wall Street, the Dow hit a record high for the first time since the Iran war began, and the S&P 500 was on track for its eighth straight weekly gain. Stocks were boosted by growing demand for AI-related stocks as concerns about a recession from the war remained.
Although the gaps have been narrowed between Iran and the United States, there are still points of hold over Iran’s rich uranium and control over the Strait of Hormuz.
Investors are concerned that continued energy disruptions will filter down to consumer prices, which could force a stronger monetary policy response.
“There’s a lot of waiting around for geopolitical issues. That’s keeping some people on edge, but overall the market believes everything will be resolved eventually,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
“Towards the end of the day, you can see some selling pressure” ahead of the US long weekend, he said. US stock and bond markets will be closed on Monday for Memorial Day.
The Dow Jones Industrial A average rose 369.12 points, or 0.73%, to 50,654.78, the S&P 500 rose 43.59 points, or 0.58%, to 7,489.09 and the Nasdaq Composite rose 164.55 to 6. 26,457.65.
The MSCI gauge of global shares rose 7.21 points, or 0.65%, to 1,114.10. The pan-European STOXX 600 index rose 0.8%.
The yield on the benchmark 10-year Treasury note was last down 3.4 basis points (bps) at 4.552%. A selloff earlier in the week sent yields to their highest in months or years, and the 10-year yield on Tuesday hit its highest level since January 2025.
Turkey’s stock markets rallied after being rocked this week by political moves against the country’s opposition. The benchmark BIST 100 index rose 4.5% in Istanbul, recovering from Thursday’s 6% drop that prompted a trading halt after the supreme court moved to oust top opposition leader Ozgur Ozel.
