Wall Street Rallies as SpaceX IPO Soars and U.S.-Iran Peace Deal Hopes Grow

U.S. stock markets closed higher on Friday as investors reacted positively to growing optimism surrounding a potential U.S.-Iran peace agreement and the blockbuster debut of SpaceX on the Nasdaq. Improved consumer sentiment and easing inflation expectations also supported the rally, helping major indexes post weekly gains.

The S&P 500 advanced 0.5% to finish at 7,430.86, while the Dow Jones Industrial Average climbed 0.7% to 51,202.29. The Nasdaq Composite added 0.3% to close at 25,888.84. The gains helped reverse losses seen earlier in the week, with the S&P 500 rising 0.6% for the week and both the Nasdaq and Dow gaining 0.7%.

A major driver of market enthusiasm was SpaceX’s historic initial public offering. The aerospace company priced its IPO at $135 per share, raising $75 billion in the largest IPO ever recorded. Shares opened at $150 and closed at $160.95, up 19.2% from the offering price. The closing price valued SpaceX at approximately $2.11 trillion, making it one of the world’s most valuable publicly traded companies and further boosting confidence in the technology sector.

Analysts believe the strong SpaceX IPO could pave the way for future public listings from leading artificial intelligence firms such as OpenAI and Anthropic, potentially attracting significant capital into the AI industry.

Investor sentiment was also lifted by reports suggesting a U.S.-Iran peace deal may be nearing completion. President Donald Trump indicated that an agreement could be finalized soon, potentially reopening the Strait of Hormuz, a critical global energy shipping route. Although conflicting statements from both sides created uncertainty, comments from Iranian officials and Pakistan, a key mediator, suggested negotiations were progressing.

The prospect of reduced geopolitical tensions weighed on oil prices, with Brent crude falling nearly 4% to its lowest level since March. Lower energy prices helped ease inflation concerns across financial markets.

Economic data released Friday added to the positive mood. The University of Michigan’s preliminary consumer sentiment index rose to 48.9 in June from 44.8 in May. Meanwhile, one-year inflation expectations declined to 4.6% from 4.8%, while long-term inflation expectations fell to 3.4% from 3.9%.

Market participants continue to monitor Federal Reserve policy expectations. While inflation remains above the central bank’s target, softer inflation forecasts and stabilizing energy prices have increased hopes that the Fed may avoid additional interest rate hikes in the near term.

Elsewhere, Adobe shares dropped nearly 7% after the company announced that Chief Financial Officer Dan Durn would step down and be replaced on an interim basis by Steve Day. The leadership change follows Adobe’s announcement earlier this year that CEO Shantanu Narayen plans to leave the company.

With strong demand for technology stocks, easing inflation expectations, and optimism surrounding geopolitical developments, Wall Street enters the new week with renewed momentum and growing confidence in the broader market outlook.