U.S. equities pushed higher Friday, with the Dow Jones Industrial Average notching a fresh intraday all-time high, as a Pakistan-brokered ceasefire between the United States and Iran and a blockbuster earnings report from Nvidia combined to lift sentiment across risk assets. The Dow traded 364 points higher, or 0.7%, while the S&P 500 and Nasdaq Composite each climbed 0.6%, putting the broad index on track for its eighth consecutive weekly gain.
A Geopolitical Relief Rally
The dominant catalyst was confirmation that Washington and Tehran have reached a framework agreement to end the conflict that has rattled energy and equity markets for much of the spring. The deal — mediated by Pakistan's army chief in a series of Tehran visits — includes a full ceasefire, "freedom of navigation" guarantees in the Persian Gulf and Strait of Hormuz, and a gradual lifting of U.S. sanctions on Iran.
Oil prices retreated in response, with Brent crude futures sliding 82 cents to $104.20 a barrel and West Texas Intermediate falling 60 cents to $97.66. The pullback in crude offered some near-term relief for inflation watchers after energy prices contributed more than 40% of April's hot headline CPI print. The benchmark 10-year Treasury note yield eased three basis points to around 4.55% as the geopolitical risk premium unwound.
The breakthrough caps a months-long diplomatic effort. A preliminary ceasefire had first been agreed to on April 7, but earlier this month President Donald Trump publicly rejected Iran's updated proposal, telling reporters "Iran wants to make a deal, but I'm not satisfied with it." By late May, Trump described the talks as being in their "final stages."
Nvidia Reignites the AI Trade
The second leg of Friday's advance came from chips. Nvidia's first-quarter results, released Wednesday evening, showed sales up 85% year-over-year to $81.6 billion, ahead of the $78.9 billion Street consensus, with net income of $58.3 billion versus an analyst estimate of $42.9 billion. Adjusted earnings landed at $1.87 per share against a $1.78 forecast.
The data-center segment was again the engine of growth, with revenue surging 92% year-over-year to $75.2 billion. Management guided current-quarter revenue to $91 billion — well above consensus — and unveiled an $80 billion stock buyback program alongside a dividend increase.
Nvidia shares themselves were little changed in Thursday's session, finishing down 0.9%, but the read-through to the broader AI complex was unambiguously bullish. SoftBank Group surged more than 11% Friday on its Nvidia exposure, and AI-linked semis, hyperscaler suppliers, and power-infrastructure names led the tape.
"Nvidia is no longer beating a high bar — it is the bar," said William Rhind, CEO of GraniteShares, characterizing the muted single-stock reaction as a sign that expectations have finally "caught up to fundamentals."
Eight Weeks and Counting
With Friday's gains, the S&P 500 is up 1.1% week-to-date and on pace for its eighth straight weekly advance — a streak that would mark one of the longest of the cycle. The combination of receding geopolitical tail risk, lower oil, easing long-end yields, and a fresh validation of the AI capex story has given bulls a clean narrative heading into the long Memorial Day weekend.
The risks have not vanished. April CPI at 3.8% year-over-year still sits well above the Fed's 2% target, and new Chair Kevin Warsh's debut FOMC meeting on June 16-17 looms as the next major macro catalyst. But for one Friday, at least, the tape is doing exactly what bulls hoped: rewarding peace, earnings, and patience.
Sources: CNBC (Stock market live updates, May 21, 2026), Yahoo Finance (Dow clinches record high on US-Iran peace hopes), Al Jazeera (Nvidia posts record profit of $58.3bn amid AI chip boom), Bloomberg (Nvidia Q1 2026 results), Kiplinger (Nvidia Earnings Live), CNBC (Oil falls with US-Iran peace talks in focus).