S&P 500, Dow, Nasdaq End Week Higher On Chipmaker Strength, Easing Oil Amid Signs Of Easing US-Iran Conflict — META, COST, MSFT, CRWD, SKHY In Focus

• The S&P 500 ended Friday 0.5% higher, the Nasdaq 100 added 0.4%, and the Dow Jones Industrial Average rose 0.9%.
• Tehran submitted a week-long proposal to Washington to resolve hostilities, unblock the Strait of Hormuz, and launch broader negotiations on its nuclear program, The New York Times reported. 
• Brent crude eased and settled near $104.

U.S. stock indices ended Friday higher as oil prices cooled after a media report suggested signs of diplomatic talks between the U.S. and Iran, while a jump in chipmaker stocks helped offset weakness from soaring Treasury yields. 

The S&P 500 ended Friday 0.5% higher, the Nasdaq 100 added 0.4%, and the Dow Jones Industrial Average rose 0.9%. The Russell 2000, which tracks stocks with small market capitalizations, rose 0.1%.

The SPDR S&P 500 ETF (SPY) was up 0.7%, the SPDR Dow Jones Industrial Average ETF (DIA) rose 1%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) added 0.6%. 

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) rose about 1.4% each, tracking gains in Nvidia (NVDA), Broadcom (AVGO) and Micron Tech (MU). The broader Vanguard Information Technology ETF (VGT) added about 1%.

Retail sentiment on Stocktwits for QQQ and SPY was ‘bullish’ with ‘high’ message volumes, and ‘neutral’ for the DIA. 

US Market Drivers

Iranian Foreign Minister Abbas Araghchi said Thursday that Tehran submitted a week-long proposal to Washington to resolve hostilities, unblock the Strait of Hormuz, and launch broader negotiations on its nuclear program, The New York Times reported. 

West Texas Intermediate crude futures dropped 2.33% to settle at $92.41 per barrel, while international benchmark Brent crude futures declined 2.14% to $104.32 a barrel on Friday.

Tech stocks gained through the week, with Meta leading gains following the popularity of its Muse AI, which also pushed overall hyperscalers and AI stocks. Several analysts also looked at Muse as a legitimate revenue source for Meta going forward.

TD Cowen analysts estimate worldwide Muse revenue will grow from $55 million this year to $1.8 billion in 2027, then reach $27 billion in 2031.

While gains in the overall AI play aided benchmark indices, elevated Treasury yields during the week capped further gains. The 10-year Treasury yield climbed to its highest level since 2007, while the 30-year yield reached its highest level since 2004. The two were last seen up slightly at 5.163% and 5.488%, respectively. 

Key Trending Stocks

Meta Platforms Inc. (META) is upgrading safety notifications in its Muse artificial intelligence assistant after discovering a security flaw that could let malicious actors access private user files, according to an internal company incident report first reported by The Information. 

Federal prosecutors have wrapped up an investigation into commercial arrangements between CrowdStrike Holdings Inc. (CRWD) and a major distributor and chose not to pursue enforcement actions, according to a report by Bloomberg News.

SK Hynix Inc. (SKHY) is reportedly considering an initial public offering (IPO) of its U.S.-based Solidigm unit as early as next year. The issue could value the storage-chip business at up to $150 billion, Reuters reported Friday, citing people familiar with the matter. 

Microsoft (MSFT) unveiled its biggest Copilot overhaul yet on Friday, adding an always-on AI agent, coding capabilities and deeper Office integration as it looks to turn the assistant into a central hub for workplace tasks. 

Costco Wholesale Corp.’s (COST) quarterly profits surpassed Wall Street estimates after the company recorded a benefit from tariff refunds.

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