U.S. Stocks Rally as Iran Diplomacy Eases Oil Prices

U.S. stock indices ended the week higher on Friday, September 25, 2026, marking their first winning week in three. The Dow Jones Industrial Average led the gains, rising approximately 479 points to close at 51,829, while the S&P 500 and Nasdaq Composite both climbed 0.5%.

Market optimism was primarily driven by reports of diplomatic negotiations between the United States and Iran to end their conflict and reopen the Strait of Hormuz. This progress led to a decline in Brent crude oil prices, which fell between 2% and 2.8% to settle between $97.44 and $104.32 per barrel, easing inflationary pressures.

Trading remained volatile throughout the day. A University of Michigan report indicating that consumers expect inflation to rise to 4.6% next year briefly pushed the 10-year Treasury yield to 5.22%. Yields later retreated to 5.18%, though this remained a 19-year closing high. Investors continue to monitor the Federal Reserve System, with the CME FedWatch tool indicating a 66% probability of a rate hike in October.

Corporate activity also supported the rally. Akamai Technologies shares rose 3% after announcing an $11.6 billion multiyear agreement with AI firm Anthropic. Other notable movers included Microsoft, which rose over 3%, and Costco Wholesale, which reported quarterly profits that exceeded analyst expectations.