US stocks close at record highs, post weekly, monthly gains

US equities advanced on Friday, ending the week and month with solid gains, supported by strong performance in technology and artificial intelligence stocks, as well as growing optimism that an agreement could soon be reached to end tensions between the US and Iran.

The Dow Jones Industrial Average rose 0.7%, or 363 points, to close at a record 51,032.

The S&P 500 gained 0.2%, or 16 points, to 7,580, while the Nasdaq Composite advanced by the same percentage to 26,972, with both indexes also reaching new record highs.

On a weekly basis, the Nasdaq climbed 2%, while posting an 8% gain for May. The S&P 500 gained 1% during the week and 5% for the month, while the Dow Jones rose 1% weekly and 2% monthly.

Across the Atlantic, the STOXX Europe 600 edged up 0.15% to 626 points, supported by gains in aerospace and defense stocks.

Meanwhile, the FTSE 100 fell 0.15% to 10,409, while Germany’s DAX and France’s CAC 40 ended little changed at 25,104 and 8,183, respectively.

In Japan, the Nikkei 225 surged 2.55% to a record closing high of 66,329, while the Topix gained 1.4% to 3,957, also marking a record close.

As for commodities, Brent crude futures for July delivery declined 1.8%, or $1.66, to settle at $92.05 per barrel, bringing monthly losses to roughly 16%.

US WTI crude futures fell 1.7%, or $1.54, to close at $87.36 per barrel, ending the month down by more than 14%.

Gold futures rose 1.3%, or $60.6, to settle at $4,593 per ounce, though the precious metal still recorded a monthly loss of approximately 1.5%.

What Drove the Markets?

US equities received strong support throughout the month from semiconductor manufacturers and companies developing AI-related technologies.

During Friday’s session, investor sentiment was further boosted after President Donald Trump suggested that the Strait of Hormuz could soon reopen and that progress was being made toward ending the conflict with Iran, helping fuel the market’s upward momentum.