Intel shares surged more than 22% on Friday after the chipmaker reported stronger-than-expected first-quarter earnings and an upbeat forecast, lifting the S&P 500 toward a record high despite mixed trading elsewhere on Wall Street. The gains came as investors welcomed renewed hope for U.S.-Iran negotiations, with Iranian Foreign Minister Abbas Araghchi expected to arrive in Islamabad for talks that could ease tensions over the Strait of Hormuz. Oil prices slipped slightly on the diplomatic signal, though Brent crude remained elevated due to ongoing shipping disruptions.
The S&P 500 rose 0.8% and was on track to surpass its all-time high set earlier in the week, while the Nasdaq Composite gained 1.5% on strength in technology stocks. The Dow Jones Industrial Average, but, fell 63 points, or 0.1%, dragged down by declines in financial shares such as Goldman Sachs and JPMorgan Chase. Intel’s jump — its largest single-day gain since 1987 — helped offset weakness in other sectors, including a 14.2% drop in Coursera after disappointing first-quarter results and a 23.7% fall in Charter Communications following weaker-than-expected profits and customer losses.
Market analysts noted that while geopolitical tensions continue to influence oil prices, investors are increasingly looking past the Middle East conflict to focus on corporate fundamentals. Robert Conzo of The Wealth Alliance said the market is “almost setting [the conflict] aside and looking right through it,” though headlines from the region still trigger short-term swings. He attributed resilience to expectations of a short-lived conflict, the temporary nature of oil supply shocks, and a strong start to earnings season, which together have encouraged investors to return to basics.
Technology stocks led the advance, with Intel’s surge boosting the Philadelphia SE Semiconductor Index, which was on track for its 18th consecutive day of gains. Rival AMD rose 12.5%, and the information technology index added 1.2%. Procter & Gamble as well contributed positively, rising 3.5% after reporting broader-than-expected profit growth across regions and product lines, including Bounty and Tide. In the bond market, Treasury yields eased as traders increased their bets on a potential Federal Reserve rate cut later in the year.
Oil prices remained volatile, with Brent crude for June delivery trading between $103 and $107 earlier in the day before settling down 0.3% at $104.76. The more actively traded July contract fell 0.6% to $98.78. Despite the pullback, Brent futures were still about 44% above pre-war levels due to the blockade of Iranian ports and Iranian seizures of ships in the Strait of Hormuz, which continues to disrupt crude flows from the Persian Gulf. Some investors viewed the decline as a buying opportunity, arguing that energy valuations had become more compelling.
The mixed performance across sectors highlighted a market split between tech-driven optimism and caution in more economically sensitive areas. While semiconductor and information technology stocks rallied, healthcare declined 1.4%, and Hartford Insurance Group fell 1.3% after profit growth came in below expectations. DeepSeek, the Chinese AI startup, previewed a new model adapted for Huawei chips, but U.S. Firms previously pressured by its low-cost offerings appeared to be holding steady.
For now, Wall Street appears to be balancing two narratives: one grounded in strong corporate earnings and another shaped by the fragile diplomacy aimed at preventing a broader escalation in the Middle East. Whether the market can sustain its advance will depend on whether talks in Islamabad yield concrete progress and whether earnings momentum can continue to outweigh geopolitical noise.
Why did the Dow fall while the S&P 500 and Nasdaq rose?
The Dow Jones Industrial Average declined due to losses in financial heavyweights like Goldman Sachs and JPMorgan Chase, which were not offset by gains in technology stocks that drove the S&P 500 and Nasdaq higher.
What role did Intel play in the market’s movement?
Intel’s shares jumped over 22% after a blowout earnings report and optimistic forecast, leading the technology sector higher and providing the primary lift for the S&P 500 and Nasdaq.
How are oil prices being affected by the U.S.-Iran situation?
Oil prices remain elevated due to disruptions in the Strait of Hormuz, though they slipped slightly on Friday after Iran’s foreign minister signaled he was traveling to Pakistan for potential negotiations.
