S&P 500 Hits Record on Jobs Beat and Iran Deal Hopes

US stocks extended their rally on Friday, with the S&P 500 index hitting a fresh all-time high and marking its sixth consecutive weekly gain. The rally was fueled by better-than-expected April jobs data and optimism surrounding US-Iran peace negotiations.

Jobs Report Exceeds Expectations

While hiring pace moderated, April nonfarm payrolls still surpassed analyst forecasts. The data suggests the labor market remains resilient, supporting the case for continued economic expansion without tipping into recession — the “soft landing” scenario investors have been pricing in.

Iran Deal Optimism

Despite a recent exchange of fire in the Strait of Hormuz, the US and Iran are reportedly considering a one-page peace framework. Markets interpreted this as a sign that geopolitical risk premiums are declining, boosting risk assets across the board.

Sixth Straight Weekly Gain

The S&P 500’s six-week winning streak is its longest run since last year. Both tech and cyclical sectors led the advance, reflecting investor confidence in both economic growth and corporate earnings.

Analysts note that while market sentiment is firmly in bullish territory, investors should keep an eye on inflation data and Federal Reserve policy signals. A resurgence in inflation pressures could challenge the current rally.

Sources: Google News, BBC World