Wall Street's major indexes closed at record highs on Friday (Saturday AEST), capping a strong week and month for United States equities as robust earnings from Dell Technologies fuelled gains in technology shares while investors awaited further details on a potential agreement between the United States and Iran.
The Dow Jones Industrial Average rose 363.4 points, or 0.7%, to a record 51,032.3. The S&P 500 gained 16.4 points, or 0.2%, to 7,580.1, while the Nasdaq Composite advanced 55.2 points, or 0.2%, to 26,972.6.
The gains extended a solid run for U.S. equities. For the week, the S&P 500 rose 1.4%, the Nasdaq gained 2.4%, and the Dow added 0.9%.
Monthly performance was even stronger, with the Dow climbing 2.8%, the S&P 500 advancing 5.2%, and the Nasdaq surging 8.4%.
Investor attention remained focused on developments in the Middle East after President Donald Trump concluded a meeting in the White House Situation Room without announcing a final decision on whether to approve a proposed agreement aimed at pausing the three-month conflict involving Iran.
An administration official told CNBC that no decision had been announced following the meeting.
Earlier in the day, Trump wrote on Truth Social that he was meeting in the Situation Room "to make a final determination" and reiterated that Iran "must agree that they will never have a Nuclear Weapon". He also stated that the Strait of Hormuz must be "immediately open".
Technology stocks provided the market's strongest support after Dell Technologies raised its full-year profit and revenue forecasts on Thursday.
Dell shares soared 32.8%, leading gains across the sector. The upbeat outlook lifted several AI-related peers, with Hewlett Packard Enterprise jumping 12.6% and Super Micro Computer rising 11.6%. Microsoft added 5.4%.
The gains came despite ongoing concerns that the Iran conflict could contribute to higher inflation and weigh on global economic growth.
Outside the technology sector, several retailers came under pressure following earnings updates.
Gap shares tumbled 15.4% after the apparel retailer lowered its annual sales forecast, citing a more challenging consumer environment.
American Eagle Outfitters fell 11.8% after maintaining its annual comparable sales forecast, disappointing investors seeking stronger growth guidance.
Economic data released on Thursday presented a mixed picture of the U.S. economy. The person consumption expenditures (PCE) price index accelerated in April at its fastest pace in three years, reinforcing concerns that price pressures may remain elevated.
At the same time, first-quarter gross domestic product (GDP) growth was revised lower, showing the economy expanded at an annual rate of 1.6%.
On the bond markets, Treasury yields edged lower. The benchmark 10-year Treasury yield slipped 0.4% to 4.437%, while the two-year Treasury yield fell 0.6% to 4.002%.
