AI Optimism and Easing Iran Tensions Drive U.S. Stocks to Record Highs

Stocks ended the week at record highs as investors bet that tensions between the United States and Iran could ease, while enthusiasm for artificial intelligence spending continued to lift equities. The S&P 500’s rally, combined with a softer oil backdrop, also helped Treasuries recover some of the losses they had suffered since the conflict began.

According to Bloomberg’s markets wrap, hopes for a ceasefire or broader deal that could end the Iran conflict powered a historic run of weekly gains in U.S. stocks. The benchmark index closed at a fresh record on Friday, extending a winning streak that traders linked to both peace-deal optimism and confidence that AI-related capital spending will keep driving corporate earnings growth.