PrintUS STOCKS-Wall St climbs, Dow at record high with US-Iran talks in spotlight
BY Reuters | ECONOMIC | 11:47 AM EDT* PC makers Dell, HP surge after Lenovo
* Est?e Lauder climbs after ending merger talks with Puig
* Kevin Warsh to be sworn in as Fed chair later in the day
* S&P 500 eyes eighth weekly gain, best streak since December 2023
* Indexes up: Dow 0.82%, S&P 500 0.65%, Nasdaq 0.67% (Updates with afternoon trading levels)
By Shashwat Chauhan and Medha Singh
May 22 (Reuters) - Wall Street's main indexes rose on Friday ahead of a long weekend, with the blue-chip Dow hitting a record high for the first time since the Iran war began, as investors tracked progress in talks to end the nearly three-month-old conflict.
The S&P 500 is on track for an eighth consecutive weekly gain, which would mark its best winning streak since December 2023.
Most megacap and growth stocks traded higher, with Apple
Semiconductor stocks, a key driver of recent Wall Street
gains, were broadly up with the Philadelphia chip index
rising 2.4%. Qualcomm
PC makers Dell Technologies
In the latest on the Iran situation, Reuters reported that a Qatari negotiating team arrived in Tehran in coordination with the United States to try to help secure a deal to end the war and resolve outstanding issues.
"The market has been working under the assumption that there's going to be relatively near-term resolution," said Thomas Hayes, chairman at Great Hill Capital LLC.
"If that assumption proves to be wrong, the market will catch down very quickly. The market has been trained that there's an embedded Trump put in the market."
Global stocks have whipsawed since the conflict began in late February, but hopes of an eventual resolution to the war, optimism in the AI trade and resilient earnings growth have propelled U.S. stocks to record highs this month.
The market recovery, however, has faced some hurdles as investors fret about the inflationary impact of surging oil prices, pushing government bond yields higher around the world and hitting risk appetite this week.
At 11:34 a.m. ET, the Dow Jones Industrial Average rose 408.59 points, or 0.82%, to 50,697.24, the S&P 500 gained 48.08 points, or 0.65%, to 7,493.79 and the Nasdaq Composite gained 174.66 points, or 0.67%, to 26,467.76.
Seven out of the 11 major S&P 500 sector indexes were higher, led by information technology.
Meanwhile, government bond yields were steady after Federal Reserve Governor Christopher Waller said the Fed should axe the "easing bias" from its policy statement and effectively open the door to a possible rate hike.
Kevin Warsh will be sworn in as Fed leader at the White House later in the day, taking over the reins from Jerome Powell, a pivotal moment for monetary policy and the American economy.
The CBOE volatility index hit a more than two-week low ahead of the three-day market holiday, with U.S. markets shut on Monday for Memorial Day.
Meanwhile, the price-weighted Dow notched its first intraday record high since February 10, becoming the last of the three main U.S. stock indexes to hit the milestone.
Among others, Est?e Lauder surged 10.5% after the cosmetics maker and Spanish perfumery Puig ended talks for a potential merger.
Workday added 3.6% after the human resources software provider exceeded expectations for first-quarter revenue and profit.
Advancing issues outnumbered decliners by a 1.3-to-1 ratio on the NYSE and by a 1.37-to-1 ratio on the Nasdaq.
The S&P 500 posted 27 new 52-week highs and no new lows while the Nasdaq Composite recorded 100 new highs and 56 new lows.
(Reporting by Shashwat Chauhan and Medha Singh in Bengaluru; Editing by Pooja Desai and Devika Syamnath)
