S&P 500, Nasdaq Hit Records as Hormuz Opens

Wall Street closed at record highs Friday after Iran signaled it would keep the Strait of Hormuz open and indicated willingness to engage in peace talks with the United States. The S&P 500 and Nasdaq both reached new all-time highs, with gains concentrated in consumer discretionary and industrial sectors. Energy stocks declined as the geopolitical easing removed a key supply-risk premium from crude prices. Oil's drop directly addressed one of the market's lingering inflation concerns, as lower energy costs feed through to transportation, manufacturing, and consumer spending. The Hormuz strait carries roughly a fifth of global oil supply, so any credible signal of unobstructed passage carries outsized weight on energy pricing. Investors will now watch whether US-Iran diplomatic engagement advances materially, since a reversal in either party's posture could rapidly reprice oil and unwind the equity gains. The durability of this rally depends on follow-through in negotiations rather than the initial headline alone.