Stocks gain ground and put S&P 500 and Nasdaq on a path for all-time highs

By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — Stocks rose in morning trading Friday and put Wall Street on track to close a strong week at an all-time high.

The S&P 500 rose 0.5% early Friday and is on track to surpass its record set in February. The Nasdaq composite rose 0.5% and is also on track for a record. The Dow Jones Industrial Average rose 0.6%, or 273 points, to 43,657 as of 9:58 a.m. Eastern.

A record for the S&P 500 would mark a sharp turnaround from just three months ago, when the key measure of Wall Street’s health fell nearly 20% from the February high on fears that President Donald Trump’s trade policy could harm the economy.

The gains on Friday were broad, with nearly every sector within the S&P 500 rising. Nike soared 15.3% for the biggest gain on the market, despite warning of a steep hit from tariffs.

The broader market has seemingly shaken off fears about the Israel-Iran war disrupting the global supply of crude oil and sending oil prices higher. A ceasefire between the two nations is still in place.

The price of crude oil in the U.S. rose 1%, but has broadly fallen back since last week to levels in place before the conflict began.

Investors are also monitoring potential progress on trade conflicts between the U.S. and the world, specifically with China. Trump said the U.S. and China have signed a trade deal without providing details.

China’s Commerce Ministry also said that the two sides had “further confirmed the details of the framework” for their trade talks. But its statement did not explicitly mention an agreement to ensure U.S. access to rare earths, materials used in high-tech applications that have been at the center of negotiations.

An update on inflation Friday showed prices ticked higher in May, though the rate mostly matched economists’ projections.

Bond yields rose. The yield on the 10-year Treasury rose to 4.28% from 4.24% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, rose to 3.75% from 3.72% late Thursday.

Stocks in Europe were mostly higher, while stocks in Asia finished mixed.