Key Takeaways:
CoreWeave shares climbed Friday as a potential US-Iran peace deal and SpaceX's record $75 billion IPO debut fueled a broad rally in growth stocks.
The Nasdaq Composite surged 2.54% to 25,809.66 as a US-Iran peace deal and SpaceX's historic IPO sparked a growth stock rally.
"The combination of de-escalation in the Middle East and the largest IPO in history created a powerful risk-on signal," said Sarah Lin, equity strategist at Edgen. "Investors who had been sitting on cash rotated into growth names."
The S&P 500 added 1.75% to 7,394.30, while the Dow Jones Industrial Average rose 1.86% to 50,848.75. The Cboe Volatility Index fell 4.27% to 18.62, its lowest level in three weeks. Brent crude tumbled 3.62% to $87.11 a barrel after President Donald Trump said Washington and Tehran were close to finalizing a peace deal, easing fears of supply disruptions in the Strait of Hormuz.
For CoreWeave and other AI infrastructure providers, the macro tailwinds arrive at a critical moment. The company's cloud computing services, which power AI model training, benefit directly as risk appetite returns to growth sectors. The next test comes Wednesday when the Federal Reserve announces its rate decision, with markets pricing a 62% probability of a hold.
The rally extended across sectors, with semiconductor stocks among the biggest gainers. Micron Technology jumped 11.66%, Applied Materials rose 11.19%, and KLA Corp. added 12.92%, according to Investing.com data. The moves came as investors rotated out of software names, with Oracle falling 8.53% and Adobe declining 6.25%.
The US 10-year Treasury yield eased 2 basis points to 4.439%, while the US Dollar Index slipped 0.20% to 99.647. Gold rose 3.23% to $4,246.90 an ounce as investors hedged against residual geopolitical risk.
SpaceX's public debut on the Nasdaq under the ticker SPCX marked the largest IPO in history, with the company raising $75 billion at $135 per share and opening at a $1.77 trillion valuation. The listing drew massive retail and institutional demand, with analysts at Truist Wealth cautioning that major IPOs tend to suffer a median 9% decline in their first year. The offering also triggered a rotation in tech leadership, as investors trimmed positions in high-flying chip stocks to fund new positions in SpaceX, according to CNBC.
CoreWeave, which provides GPU cloud infrastructure for AI workloads, benefited from the broader risk-on environment that lifted growth and AI names across the board.
This article is for informational purposes only and does not constitute investment advice.
