Wall Street reached record highs on Friday, May 29, 2026, after reports indicated the United States and Iran reached a deal to extend a ceasefire and lift restrictions on vessels in the Strait of Hormuz. While major indices climbed, oil prices trended toward sharp weekly declines following the ceasefire news.
## Equity Markets Hit Record Milestones
Wall Street experienced significant gains on Friday, driven by optimism surrounding geopolitical developments in the Middle East, according to Investing.com. The benchmark S&P 500 index rose 0.3% to 7,583.73 points at 10:31 ET. The Nasdaq also reached a historic turning point, briefly topping 27,000 points for the first time ever.
Other major indices showed strength during the morning session. The Dow Jones Industrial Average reached 50,862.44 at 10:45:56, an increase of 0.38%. While broader markets saw gains, the Small Cap 2000 index recorded a decline of 1.25%, sitting at 2,899.85 as of 10:45:31.
## Proposed U.S.-Iran Peace Deal
The market rally was buoyed by reports that the United States and Iran have reached an agreement to extend their ceasefire. A key component of the reported deal involves the removal of restrictions on vessels crossing the Strait of Hormuz.
According to Investing.com, the reported peace deal is currently pending approval from President Trump. The prospect of stabilized maritime transit in the Strait of Hormuz has provided a significant boost to investor sentiment.
## Commodity Market Shifts
The potential for a sustained ceasefire is already impacting energy markets. While equity markets surged on the news, oil prices are on pace for sharp weekly declines due to the U.S.-Iran ceasefire deal prospects, according to Investing.com. The shift reflects market expectations of reduced geopolitical risk and improved stability in critical energy transit corridors.