U.S. stocks closed higher Friday as investors cheered the blockbuster debut of SpaceX and welcomed a sharp decline in oil prices amid signs of progress in negotiations between the United States and Iran. The Dow Jones Industrial Average rose 353.51 points, or 0.70%, to 51,202.3, while the S&P 500 gained 37.16 points, or 0.50%, to 7,431.46. The Nasdaq Composite added 79.18 points, or 0.31%, to 25,888.8.
The dominant story on Wall Street was SpaceX, whose long-awaited public debut became the largest IPO in history. Shares opened above their $135 offering price and surged nearly 20% as investors rushed into Elon Musk’s space and AI infrastructure giant. The strong debut pushed SpaceX’s valuation above $2 trillion and underscored the market’s appetite for companies tied to artificial intelligence, data infrastructure, satellite communications, and next-generation computing.
In a research note released Friday morning, Wedbush analyst Dan Ives described the offering as a “big day for Musk, markets, and tech stocks,” noting reports that demand approached four times the available shares and exceeded $250 billion. Wedbush also argued that anticipation for the IPO had already been influencing trading activity as investors rotated capital from existing technology positions into SpaceX allocations.
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The market received an additional boost from energy prices moving sharply lower throughout the session. Reports indicate Washington and Tehran are moving closer toward an interim framework agreement, raising expectations that tensions in the Middle East could ease and potentially increase future Iranian oil exports.
Oil traders reacted quickly. Brent crude fell $3.42, or 3.78%, to $86.96 per barrel, while WTI crude declined $3.41, or 3.89%, to $84.30. The retreat in crude prices helped alleviate concerns about a renewed inflation spike and supported broader risk appetite across equities.
At the same time, investors grew noticeably more comfortable with risk. The CBOE Volatility Index, or VIX, plunged 1.77 points, or 9.11%, to 17.67, reflecting a substantial decline in demand for portfolio protection as fears surrounding the Iran conflict eased.
Unlike many recent sessions in which gains were concentrated in a handful of technology leaders, Friday’s advance was broader. The Dow outperformed both the Nasdaq and S&P 500, suggesting investors were embracing a wider range of risk assets rather than focusing exclusively on mega-cap technology stocks.
Looking ahead, investors will be watching the FOMC meeting, which will be Kevin Warsh's first as the Chair of the Federal Reserve.