Oil prices drop on renewed optimism of a US-Iran peace deal. Gold settles above $4,700 and US indice

Key Takeaways

•U.S. stock indices reached fresh record highs, with the S&P 500 breaking above 7,300 and the Nasdaq continuing its AI-driven rally.

•Gold settled back above the $4,700 level as the U.S. dollar weakened and expectations for aggressive Federal Reserve tightening eased.

•President Donald Trump first launched “Project Freedom” in the Strait of Hormuz before later signaling that a U.S.–Iran peace agreement was close, sharply shifting market sentiment throughout the week.

• Asian stock markets surged to record highs, led by Japan‘s Nikkei and South Korea’s Kospi.

•Samsung Electronics crossed the $1 trillion market capitalization milestone after a massive rally in semiconductor and AI-related stocks.

•Bitcoin climbed back above the $80,000 level as institutional demand and ETF inflows continued supporting the crypto market.

•Oil markets remained highly volatile as traders reacted to changing headlines surrounding the Strait of Hormuz and U.S.–Iran negotiations.

US Stocks Continue to Advance higher

Economic data was one of the main drivers of market sentiment during the week. The ADP employment report came in stronger than the previous reading at 109K new jobs added in April, but fell short of expectations , showing that the U.S. labor market remains resilient despite slower economic momentum. This reinforced expectations that the Federal Reserve may keep interest rates elevated for longer.

Equities continued to rally, while Treasury yields and the U.S. dollar remained under pressure during most of the week. Nasdaq 100 jumped 3.45% to a new record high above 28,800. The S&P 500 gained 1.6% breaking a new high above 7,300. While the Dow Jones traded mixed, finishing the week mostly unchanged.

Asian Stocks Reach Record Highs

Asian markets delivered one of their strongest weekly performances of the year. Japans Nikkei 225 surged above the 62,000 level for the first time ever, supported by strong gains in technology, semiconductor, and financial shares. Investor enthusiasm surrounding artificial intelligence and chip demand continued to fuel buying momentum across the region.

South Koreas Kospi also reached fresh record highs after rallying sharply during the week. Samsung Electronics became one of the biggest highlights globally after its market capitalization surpassed $1 trillion. Shares of SK Hynix and other semiconductor companies also posted massive gains as investors continued rotating into AI-related names.

The strength across Asian equities reflected improving global risk sentiment, easing oil prices later in the week, and continued confidence in the long-term AI growth story.

Cryptocurrencies See Positive ETF Net Flows

The cryptocurrency market regained strong bullish momentum this week, led by Bitcoin moving back above the $80,000 level. Institutional demand remained one of the main drivers behind the rally, with spot Bitcoin ETFs continuing to record positive net inflows. Investor sentiment improved alongside the broader rally in risk assets, especially technology stocks and AI-related sectors.

Bitcoin outperformed most major altcoins during the week, reflecting continued preference for large-cap crypto exposure among institutional investors. Ethereum and several major altcoins also moved higher, though gains remained more moderate compared to Bitcoin.

ETF inflows and improving macro sentiment continue to support the broader crypto market outlook heading into next week.

Outlook for Next Week

Markets are entering next week with strong bullish momentum, but several major risks remain unresolved.

Investors will continue monitoring developments surrounding the U.S.–Iran negotiations and the Strait of Hormuz, as any breakdown in diplomacy could quickly reignite volatility in oil and broader financial markets.

Attention will also shift toward upcoming inflation data, Federal Reserve commentary, and additional corporate earnings reports. The resilience of the labor market and the strength of the AI-driven earnings cycle remain key pillars supporting equities.

Meanwhile, gold, the U.S. dollar, and Bitcoin are likely to remain highly sensitive to shifts in Fed expectations and geopolitical headlines.

Major Economic Calendar Events for the Upcoming Week