US sharemarkets closed at fresh record highs on Friday, with technology stocks continuing to drive gains as investors responded positively to strong earnings and growing optimism that the Iran war may be nearing a resolution.
The Nasdaq Composite rose 0.2% to close at 26,972.62, while the S&P 500 gained 0.22% to finish at 7,580.06. The Dow Jones Industrial Average climbed 363.49 points, or 0.72%, to 51,032.46. All three benchmarks also reached new intraday record highs during the session.
Technology stocks remained at the centre of the rally. Dell Technologies surged nearly 33% after reporting first-quarter earnings and revenue ahead of expectations and raising its full-year guidance.
Memory and semiconductor stocks also advanced, with Micron Technology rising 5% and Qualcomm gaining 3%. Micron finished May up almost 88%, while Qualcomm rose close to 40% over the month.
Friday’s gains capped another strong month for Wall Street. The Nasdaq rose more than 8% during May, while the S&P 500 gained 5% and the Dow added almost 3%.
Investor sentiment was also supported by reports that US and Iranian negotiators had agreed to a 60-day memorandum of understanding aimed at extending the ceasefire and continuing negotiations.
President Donald Trump said on Friday he was making a “final determination” on the proposed framework while reiterating that Iran must never obtain a nuclear weapon and that the Strait of Hormuz must remain open.
Australian Market Outlook
Australian shares are expected to open slightly lower on Monday after a strong finish to the previous week, with investors turning their attention to domestic economic data and central bank commentary.
S&P/ASX 200 futures are down 13 points, or 0.1%, suggesting a softer start to trading after Friday’s strongest rally in almost two months.
Markets will continue monitoring developments surrounding negotiations between the US and Iran, with hopes of a ceasefire extension and the reopening of the Strait of Hormuz remaining a key driver of global sentiment.
The Australian dollar strengthened to around US72¢ on Friday as optimism surrounding a potential peace agreement supported risk appetite.
Locally, investors will be looking for further signs that economic growth is slowing, while a series of central bank speeches may provide additional insight into the outlook for interest rates.
