The benchmark S&P 500 and the tech-heavy Nasdaq each neared their third consecutive record high on Friday, while the blue-chip Dow marked its highest close since late February, as investors cheered Iran’s decision to open the Strait of Hormuz and were hopeful it could strike a deal to end its war with the United States.

Iranian Foreign Minister Abbas Araqchi said in a post on X that the passage for all commercial ships through the Strait of Hormuz was “fully open” after the cease-fire agreement in Lebanon. This follows US President Donald Trump’s announcement that talks between Tehran and Washington could be held later this week and they could soon secure a peace deal to end the Iran war, which has killed thousands since the US and Israel launched a joint attack on Iran on February 28. While statements from both sides left uncertain how quickly shipping could resume, US crude oil prices fell more than 1%. Concerns The Strait of Hormuz is an important waterway for global energy transport.

“Concerns about the world going into recession ease because it’s on the up and up for a potential final deal,” said Bob Dole, CEO of Crossmark, who noted that while there is still no U.S.-Iran deal, “it looks like it’s moving in a direction that’s enough to push the market higher.”

The technology-heavy Nasdaq Composite rose 365.78 points, or 1.52%, to 24,468.48 for its 13th consecutive advance, marking its longest winning streak since 1992.

The Dow Jones Industrial Average rose 868.71 points, or 1.79%, to 49,447.43, while the S&P 500 gained 84.78 points, or 1.20%, to 7,126.06.

Unofficially, for the week, the S&P 500 rose 4.53%, the Nasdaq rose 6.84%, and the Dow rose 3.2%.

Energy stocks slide as oil tumbles The small-cap Russell 2000 outperformed large-cap gains, closing up 2.1%, and also posted a record close after hitting its first intraday record high since the war broke out.

“The drop in energy prices has a big impact on small caps because they have higher margins,” said Nick Johnson, CEO and CIO of Willis Johnson & Associates, adding, “It’s becoming clear that the US and Iran want to see this behind them.”

Among the S&P 500’s 11 major industry sectors, energy was the biggest loser, ending down 2.9%, followed by Exxon Mobil, down 3.6% and Chevron, down 2.2%, making the benchmark’s second and third biggest drags on the day.

The biggest gain was consumer discretionary, which ended up just under 2%, leading to its advances by cruise operators. Royal Caribbean grew 7.3% while Carnival grew 7%. Industrials was the second strongest sector, led by airline United Airlines with 7% growth of 1.8%, and its percentage gain.

Even as caution continues on the Straits Passage, some analysts warned that logistical challenges remain for shippers.

“Ship operators still face astronomical war-risk insurance premiums, potential mine risks and uncertainty about enforcement,” said Eric Bethel, general partner at maritime-focused investment firm Mare Liberum. The S&P’s biggest drag was Netflix, which fell 9.7% after forecasting current-quarter revenue to fall short of expectations. The company also announced the exit of co-founder and longtime chairman Reed Hastings, ending a 29-year tenure.

Shares of Alcoa fell 6.8% after the aluminum maker reported first-quarter profit and revenue that fell short of analysts’ estimates, citing elevated costs and softening demand.

Leading issues edged lower on the New York Stock Exchange by a 4.03-to-1 ratio, where there were 623 new highs and 46 new lows. On the Nasdaq, 3,685 stocks advanced and 1,183 declined as advancing issues outnumbered decliners by a 3.11-to-1 ratio. The S&P 500 posted 49 new 52-week highs and no new lows.

Volume was relatively strong on US exchanges, where 20.29 billion shares changed hands compared to the 19.12 billion moving average of the past 20 sessions.