The Nasdaq 100 Index was on track for a fresh all-time closing high on Friday, propelled by a blockbuster sales forecast from Intel Corp. that fueled a rally in technology stocks. Meanwhile, trader optimism regarding the Middle East increased as Iran's foreign minister announced he would travel to Pakistan.
Tech Stocks Surge
The tech-heavy gauge gained 1.7% by 12:01 p.m. in New York, with chipmakers such as Advanced Micro Devices Inc. and ARM Holdings Plc contributing to the gains. The S&P 500 Index also advanced, rising 0.7%.
“With earnings season underway, fundamentals are back, which is a welcome development for stocks, which have been tethered to the price of oil for much of the past two months,” said David Laut, chief investment officer at Kerux Financial.
Intel's Stellar Performance
Intel shares surged 22%, on track for an all-time high after delivering a revenue forecast that shattered Wall Street expectations. The upbeat outlook indicates progress on a turnaround plan that positions the chipmaker to benefit from the buildout of artificial-intelligence computing.
“There’s beating earnings expectations and then there’s smashing them,” said Russ Mould, investment director at AJ Bell. “With no hint of hyperbole, it’s fair to say Intel has done the latter with its latest quarterly results.”
Semiconductor Sector Rally
The earnings come as the Philadelphia Stock Exchange Semiconductor Index, known as the SOX, is in the midst of a record rally. The chipmaker gauge was 4.2% higher on Friday. Investors anticipate strong growth for the sector driven by demand related to artificial intelligence.
Upcoming Earnings
The next week will be crucial for tech, with five of the so-called Magnificent Seven — Amazon.com Inc., Alphabet Inc., Meta Platforms Inc., Microsoft Corp. and Apple Inc. — reporting earnings. These reports will help confirm “whether or not the sector’s share price gains in recent weeks are justified,” said Kerux Financial’s Laut. “The big tech stock correction that started prior to the Iran war has just about run its course, and valuations are back to elevated levels. The outlook for big tech stocks depends purely on earnings.”
Geopolitical Developments
Outside of the tech euphoria, traders watched for updates on the U.S. and Iran. Abbas Araghchi, Iran’s foreign minister, said he was heading to Pakistan but dampened speculation that the Islamic Republic and the U.S. were close to a second round of negotiations. Meanwhile, CNN reported that Trump will send U.S. special envoy Steve Witkoff and Jared Kushner to Pakistan for talks, citing two administration officials.
Brent crude fell 0.6% to US$104 per barrel as Pakistan said a second round of U.S.-Iran talks were expected, without specifying when. Earlier, an official familiar with the matter said Iran’s foreign minister was expected in Islamabad on Friday night for a possible second round of peace talks.
