Investors hoped for a peace deal between Iran and the United States, and shares of SpaceX soared in their debut, becoming the largest IPO in Wall Street history. The United States and Iran have signaled that an agreement to end their war is close, a senior US administration official said, adding that a draft proposal had been put forward that both sides liked. US President Donald Trump has said several times since mid-March that a deal to end the war with Iran is close. Market participants were hooked on shares of Elon Musk’s SpaceX, which began trading on the Nasdaq on Friday. The IPO price of its shares was over $135 each, valuing the company at more than $2 trillion.

Shares of other space stocks, which have risen in the lead-up to the debut, eased on Friday, including Rocket Lab, Intuitive Machines and Planet Labs.

Progress in peace talks helped boost sentiment, said Jack Dollarhyde, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

“There’s still hope for a peace deal. Trump has stopped the attacks… third parties are making sure the peace deal is happening.”

That puts pressure on oil prices and reduces concerns about higher inflation and interest rates, he said.

Investors were also looking forward to next week’s Federal Reserve policy meeting, which will be the first under Kevin Warsh.

According to preliminary data, the S&P 500 rose 36.30 points, or 0.51%, to close at 7,431.83 points, while the Nasdaq Composite gained 77.77 points, or 0.30%, to close at 25,887.43. The Dow Jones Industrial Average rose 353.42 points, or 0.71%, to 51,208.20. US equity funds saw their first weekly outflow in three weeks and the technology index confirmed a correction earlier this week. Analysts believe some weakness in U.S. stocks and last week’s fall in bitcoin may have led traders to trim holdings ahead of SpaceX’s debut.

SpaceX now ranks among the largest publicly listed US companies.

Mike Dixon, head of research and quantitative strategy at Horizon Investments in Charlotte, North Carolina, said he was surprised by the lack of volatility at SpaceX so far, given the hype surrounding the IPO. Shares of Tesla, another Musk company that trades at a premium to its earnings, ended higher.

Only about 3% to 4% of SpaceX’s shares are expected to be available for trading, with a larger allocation to retail investors.

IPOs of AI companies OpenAI and Anthropic are also highly anticipated later in the year. SpaceX, which also includes Starlink and xAI, has already defied some Wall Street conventions.

Some analysts have voiced caution, however, over the company’s fundamentals, which posted an annual loss of more than $4 billion last year.

Amid the day’s decline, Adobe fell after the exit of CFO Dan Dern.