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US Stock Market Highlights: Wall Street ended on a mixed note on Friday, with the S&P 500 and the Nasdaq Composite closing at record highs as optimism around potential US-Iran peace talks lifted investor sentiment, even as the Dow Jones Industrial Average edged lower.A sharp melt-up in equities is unlikely without a clear breakthrough in US-Iran negotiations, according to Barclays strategist Emmanuel Cau.Cau said hopes of de-escalation, including signals from Donald Trump, along with a steady start to earnings season, should help provide a near-term floor for markets.However, he cautioned that further upside will likely depend on tangible progress in negotiations, rather than just expectations of easing tensions.Retail investors are taking profits in Intel as the stock rallies sharply following a strong earnings report, according to VandaTrack.The firm said individual investors have net bought $2.6 billion worth of Intel shares since September, with average retail positions rising around 90% over that period.However, during Friday’s rally, retail traders sold more than $18 million worth of stock, locking in gains as shares hit intraday highs.Vanda noted that retail investors have been “among the smarter money” in Intel, having built positions early and benefiting from the recent surge.Semiconductor stocks are on track to notch an 18-day winning streak, continuing to power record highs in the S&P 500 and Nasdaq Composite.The Philadelphia Semiconductor Index has risen for 18 consecutive sessions since March 30, without a single down day during the period, according to Bespoke Investment Group.Using the VanEck Semiconductor ETF as a proxy, the sector is up around 40% over the stretch, marking its strongest 18-day rally on record.Nvidia reclaimed the $5 trillion market cap mark on Friday, as a strong chip-sector rally boosted the stock.Shares rose 4.6% in trading, adding roughly $260 billion in value, supported by momentum following earnings from Intel and a nuclear power deal involving Oklo.Nvidia now holds a roughly $1 trillion lead over Alphabet, the second-largest company by market value. At around $209 per share, the stock is nearing its all-time high and is on track for a record close if gains hold.As many as 25 stocks in the S&P 500 hit new 52-week highs on Friday, reflecting broad market strength led by technology and semiconductor names.Among the standout names reaching all-time highs were Amazon, Applied Materials, AMD, Intel, KLA Corporation, Lam Research, Monolithic Power Systems, and Micron Technology.Other names hitting record levels included Globe Life and Norfolk Southern.On the downside, stocks hitting new 52-week lows included Tractor Supply, Insulet, and Cognizant.A powerful rally in semiconductor stocks is undercutting the case for a sustained software rebound, as leadership swings back to chips.Over the past five days, the iShares Expanded Tech-Software Sector ETF has slipped slightly, while the iShares Semiconductor ETF has surged more than 11%, marking a sharp shift in market leadership.Heavyweights are driving the move, with Nvidia reclaiming a $5 trillion market cap, while Intel and Texas Instruments posted historic gains. Momentum names like Arm Holdings and AMD have also surged sharply.

US Treasury Secretary Scott Bessent has defended ongoing talks around extending dollar support to allies in the Persian Gulf and Asia, as geopolitical tensions linked to the Iran war ripple through global markets.

At the centre of the discussion are currency swap lines—arrangements that allow central banks to exchange currencies and access US dollars during periods of stress. Bessent described these as routine tools that reflect the dominance of the dollar and help stabilise financial systems.

Countries facing economic strain from the conflict are seeking such backstops, with reports suggesting the US may extend support to nations like the UAE. The mechanism has historically been used during crises—from the 2008 financial meltdown to the COVID-19 shock—to ease funding pressures.

However, the move carries political risk for Donald Trump, as critics may view it as aiding wealthy nations while inflation concerns persist at home.

Nvidia briefly crossed the $5 trillion market capitalisation mark again on Friday, riding a renewed surge in artificial intelligence optimism. The stock rose about 5% in midday trade and was on track to hit a fresh record closing high.

The rally comes nearly six months after Nvidia first breached the milestone, highlighting how firmly it remains at the centre of the AI boom.

The trigger this time: strong earnings from Intel, which reignited confidence across the chip sector. The optimism spilled over to peers, with Advanced Micro Devices jumping around 13% and Qualcomm gaining about 10%.

The takeaway is simple—AI momentum is not fading; it’s broadening. And Nvidia, once again, is leading the charge as investors double down on the long-term growth story.

Advanced reactor firm X-energy made a strong stock market debut, underscoring rising investor interest in nuclear power as AI and electrification fuel energy demand. The company’s shares jumped over 30% after listing above its already raised IPO price, making it the largest nuclear public offering on record with over $1 billion raised.

X-energy is betting on small, modular reactors that can be scaled up for industrial use. Its flagship design can generate power but also deliver high heat for sectors like chemicals—areas that are harder to decarbonise.

Despite not yet building any reactors, the company has secured a sizable order pipeline, with partnerships involving Amazon, Dow and Centrica.

Unlike some rivals, X-energy plans to license its technology rather than operate plants. The listing signals a broader shift: nuclear is back in the conversation, driven by the energy needs of the AI era.

Stocks saw sharp midday moves as a mix of downgrades and soft operating trends rattled investors. Shares of Comcast dropped nearly 8% after a brokerage downgrade flagged limited growth visibility, while Charter Communications plunged 23% following a drop in internet subscribers.

In pharma, Eli Lilly slipped about 4% after early prescription data for its new weight-loss pill showed a slower-than-expected start. Rival Novo Nordisk gained as investors bet its established drug would hold an edge.

Meanwhile, HCA Healthcare fell over 7% despite beating profit estimates, as a mild flu season led to fewer patient visits. Concerns are also building around future demand, with potential policy changes expected to impact patient volumes.

The broader takeaway: markets are turning sensitive to growth signals, punishing even slight disappointments.

US President Donald Trump has warned the UK of steep tariffs if it does not scrap its digital services tax on American tech firms, escalating trade tensions between the two allies.

The levy, introduced in 2020, imposes a 2% tax on revenues earned from UK users by companies such as Google, Meta and Apple. Trump criticised the policy as unfairly targeting US businesses, saying Washington could “very easily” respond with tariffs.

The UK government has defended the tax, which generated about £800 million in the 2024-25 fiscal year, calling it a necessary revenue measure.

The warning comes despite an existing US-UK trade agreement and ahead of a high-profile state visit by King Charles III. For markets, the message is clear: digital taxes are becoming a new flashpoint in global trade, with Big Tech caught at the centre.

Intel’s latest earnings have flipped a key narrative in the AI trade: it’s no longer just about GPUs. Strong demand for central processing units (CPUs), as companies scale AI infrastructure, drove a surge in Intel’s stock and lifted peers like Advanced Micro Devices, which jumped over 12%.

The momentum was reinforced by Intel’s stronger-than-expected guidance, with the company now forecasting double-digit server CPU unit growth in 2026—well above earlier expectations. Analysts say this signals a broader shift in how AI workloads are evolving.

While chips from Nvidia have dominated the AI conversation, CPUs are re-emerging as a critical layer, especially as complex, agent-driven systems demand more balanced computing power.

The read-through for markets is clear: the AI boom is expanding across the chip stack, with CPU makers and data centre players now firmly back in focus—and AMD at the centre of that rerating.Intel is having its biggest single-day gain since 1987 after surging past its dot-com-era highs in a powerful post-earnings rally.The stock is holding firmly above previous record levels, supported by better-than-expected revenue, a strong gross margin beat, and improving execution.The breakout also carries technical significance, with the prior resistance zone around $75–$76 now acting as a key support level for Intel.The move highlights continued strength in the semiconductor space, as investors reward both improving fundamentals and bullish chart momentum.Northrop Grumman and Lockheed Martin extended losses to a ninth straight session, with shares down sharply since mid-April.Since April 13, Northrop Grumman has fallen about 16%, while Lockheed Martin is down roughly 18%.Analysts flagged concerns around capital spending and weaker-than-expected earnings updates, while policy uncertainty also weighed on sentiment.The recent removal of John Phelan by Donald Trump added to investor unease, raising questions about accountability and execution across the defense sector.A classic diversified portfolio championed by Bank of America is having its best year since 1933, highlighting the return of broad-based gains across asset classes.The traditional 25/25/25/25 allocation, evenly split between stocks, bonds, cash, and commodities, is tracking a 26% gain this year, according to data shared by market commentator Mike Zaccardi.The strong performance reflects a rare environment where growth, defensive assets, liquidity, and commodities are all contributing, rather than a single dominant trade.The trend underscores a broader shift in markets, with diversification working again after years of concentrated equity-driven returns.Consumer sentiment remained near record-low levels in April, despite a modest rebound, according to the University of Michigan survey.The Survey of Consumers index came in at 49.8, above the preliminary reading of 47.6 and slightly ahead of expectations, but still marking the lowest level on record.The reading was down 6.6% from the previous month and 4.6% from a year ago, highlighting continued weakness in consumer confidence.Survey director Joanne Hsu said sentiment improved slightly after a ceasefire and softer gas prices, though near-term inflation expectations remain elevated at 4.7%.The US Department of Justice on Friday dropped its criminal investigation into the Federal Reserve and Chair Jerome Powell over a renovation project at its Washington headquarters.US Attorney Jeanine Pirro said the probe was being closed as the Fed’s Inspector General reviews cost overruns tied to the project, adding the investigation could be reopened if warranted.The Inspector General has previously reviewed the project and found no wrongdoing, but is now conducting another examination following renewed scrutiny.The move also clears the path for Kevin Warsh, nominated by Donald Trump, to move closer to a Senate confirmation vote to lead the central bank.US stocks opened higher on Friday, with major indices starting the session on a positive note.The S&P 500 rose 0.3%, while the Nasdaq Composite gained 0.7%. The Dow Jones Industrial Average added 43 points, or 0.1%.The move comes as oil prices pulled back after a recent rally. US West Texas Intermediate crude fell 1% to trade above $94 per barrel, while Brent crude slipped 0.7% to hover above $104.An unusual trend is unfolding in markets, with the S&P 500 rising to record highs even as the Cboe Volatility Index, Wall Street’s “fear gauge”, also moves higher.Typically, the VIX falls when stocks rise, but this rare “VIX-up, stocks-up” setup suggests investors are increasingly hedging against risks despite the rally.One likely explanation is lingering uncertainty around geopolitical tensions and oil prices, prompting traders to buy protection even as equities climb.If this pattern persists, it could signal caution ahead, with the potential for near-term pullbacks as market volatility catches up with elevated expectations.Oil prices moved lower on signs of potential diplomatic progress, easing geopolitical risk premium. US West Texas Intermediate crude fell 1% to trade above $94 per barrel, while Brent crude slipped 0.7% to hover above $104.Reports said Seyed Abbas Araghchi is set to arrive in Islamabad for possible peace talks with the US. The development raised hopes of de-escalation, weighing on crude prices.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.