Wall Street’s major indexes hit record closing highs on Friday and posted weekly and monthly gains as Dell results lifted tech stocks, while investors awaited details on a potential US-Iran deal. President Donald Trump said in a social media post that he will make a final decision on the Iran deal on Friday. Tehran has previously said it was looking for action, not words, when it came to an agreement.

Dell rose on Thursday after raising its full-year profit and revenue forecast. The tech sector rose, led by gains in chip stocks.

Peers Hewlett Packard Enterprise and Super Micro Computer benefited. Microsoft ascended.

The Software Services Index has also advanced.

Earlier in the session, all three indexes hit intraday record highs despite concerns about inflation and the impact of the Iran war on the global economy, fueling renewed optimism around AI and strong earnings growth.

According to preliminary data, the S&P 500 rose 16.11 points, or 0.21%, to end at 7,579.74, while the Nasdaq Composite added 53.74 points, or 0.20%, to 26,971.21. The Dow Jones Industrial Average rose 363.48 points, or 0.72%, to 51,032.45.

Earnings-driven rally

“There is definitely bullish sentiment in the market around AI. The rally is really driven by earnings,” said Ohsung Kwon, chief equity strategist at Wells Fargo.

He suggested investors buy and hold AI stocks, then earn additional income by selling call options at a much higher price than the current stock price.

Melissa Brown, head of investment decision research at SimCorp, said volume has picked up over the past few weeks, suggesting more people are getting into the market.

The S&P 500 was on track for its ninth straight weekly gain, its longest winning streak since December 2023.

The S&P 500 communications services sector declined, as Alphabet declined. Consumer staples shares were weak, with heavyweights Costco and Walmart both down.

The S&P automaker index fell after reports that Trump administration North American-built vehicles contain 82% regional content to qualify for preferential treatment under the US-Mexico-Canada agreement.

Shares of General Motors and US-listed Stellar were down. US economic data on Thursday showed that inflation rose at its fastest pace in three years in April, while GDP grew at a slower 1.6% annual rate for the first quarter. The Fed’s Kansas City President Jeffrey Schmidt warned that the energy shock may not be temporary. Michelle Bowman, vice chair of oversight, said a sustained rise in inflation may require tighter monetary policy.

Money markets expect the Federal Reserve to hold interest rates steady for the rest of the year, with a 25-basis-point hike expected in December. Among other movers, Gap shares fell after the apparel retailer cut its annual sales forecast, while American Eagle Outfitters declined after leaving its annual comparable sales forecast unchanged.