S&P 500 advances as Nasdaq hits longest run since 1992 on Hormuz reopening

Market Commentary

US indices hit fresh record highs on Friday after Iran reopened the Strait of Hormuz to non-Iranian commercial shipping, alleviating fears of energy-led stagflation. The S&P 500 rose 1.20% to its first close above 7 100, while the Nasdaq Composite gained 1.52% to 24 468.48, marking its 13th straight win and longest streak since 1992; and the Dow climbed 1.90% – all posting new intraday and closing records. Artificial intelligence (AI) stocks like Amazon, Microsoft, Nvidia, and Tesla jumped over 1% on renewed risk appetite, though Oracle dropped 3% and Netflix plunged 10% on weak second quarter guidance.

European stocks surged mirroring global gains after Iran allowed all commercial vessels through the Strait of Hormuz. The STOXX 50 climbed 2% to 6 054 and STOXX 600 1.50% to 626 – both at their highest since late February 2026 peaks – easing inflation fears with falling oil and gas prices, prospects of normalised regional energy supply and tailwinds for banks like Santander and BNP Paribas up over 4%, plus industrials such as Safran, Airbus and Schneider with gains of 4–6%. Meanwhile London’s FTSE 100 rose over 0.50% and Germany’s DAX climbed more than 2% to close near 24 700.

Precious metals edged higher on Friday, with gold up over 1% above $4 850 per ounce and silver over 3%, gaining as markets welcomed Iran's confirmation of an open Strait of Hormuz for commercial shipping under the 10-day Israel-Lebanon ceasefire, via a mandated 'coordinated route' per officials, despite President Trump's insistence that the US naval blockade remains until a full US-Iran deal. WTI crude plunged over 10% to below $84 per barrel, hitting five-week lows and boosting hopes that the 50-day supply disruption is easing, with further losses on reports of a potential $20 billion frozen funds release for Iran's uranium stockpiles and weekend talks. Brent crude oil fell over 7% trading at $92.27 per barrel.

In Asia, markets mostly closed lower despite these encouraging Middle East signals, as investor caution lingered amid the US indices' record highs: Japan's Nikkei was down 1.75%, Shanghai Composite dropped 0.11% and Hang Seng fell nearly 1%.

South African equities bucked the trend, with the Johannesburg All Share Index up 2.13%, Top 40 rising 2.38% and Resources increasing almost 4%; metals and mining surged over 5%, while the rand strengthened 0.57% against the dollar.