Wall Street closed higher on Friday, driven by real estate and discretionary stocks. Investor mood was generally upbeat over easing near-term U.S.-Iran tensions and AI-driven technology strength. Crude prices and Treasury yields settled higher. All the three benchmark indexes ended in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) added 423.31 points, or 0.8%, to close at 51,654.95. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative.

The tech-heavy Nasdaq Composite jumped 172.83 points, or 0.6%, to close at 27,366.17.

The S&P 500 rose 46.18 points, or 0.6%, to close at 7,811.54. Nine of the 11 broad sectors of the benchmark index closed in the green. The Real Estate Select Sector SPDR (XLRE), the Consumer Discretionary Select Sector SPDR (XLY) and the Healthcare Select Sector SPDR (XLV) advanced 1.9%, 1.7% and 1.6%, respectively, while the Communication Services Select Sector SPDR (XLC) declined 0.4%.

The fear gauge CBOE Volatility Index (VIX) decreased 3.7% to 14.84. A total of 14.4 billion shares were traded on Friday, lower than the last 20-session average of 17.8 billion. Advancers outnumbered decliners by a 1.65-to-1 ratio on the NYSE and by a 1.38-to-1 ratio on the Nasdaq.

Wall Street Ends Higher as Iran Tensions Ease, AI Stocks Gain

Wall Street closed higher on Friday, with real estate and consumer discretionary stocks supporting the advance. Investor sentiment improved after President Donald Trump said the United States would not attack Iran before the November mid-term elections, citing productive discussions aimed at ending the conflict. His remarks eased immediate concerns about further escalation and disruptions to global energy supplies, although uncertainty surrounding negotiations persisted.

AI-related momentum stocks also rallied, providing additional support to the broader market. The Roundhill Magnificent Seven ETF gained 1% in the session. Continued enthusiasm for AI investments reinforced expectations of sustained technology spending and long-term growth opportunities.

The market's advance came as investors prepared for the third-quarter earnings season and fresh inflation data, both of which could influence interest-rate expectations and the sustainability of the ongoing rally.

Real estate stocks surged particularly on Friday, led by optimism surrounding satellite connectivity and wireless infrastructure. Consequently, Crown Castle Inc. (CCI Quick QuoteCCI - Free Report) and American Tower Corporation (AMT Quick QuoteAMT - Free Report) soared 15.6% and 15.5%, respectively. While CCI currently carries a Zacks Rank #3 (Hold), AMT has a Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Treasury Yields and Crude Oil Prices Edge Higher

U.S. Treasury yields edged higher in the session, with the 10-year Treasury yield reaching 5.261%. Crude prices also rose 0.4%, with WTI settling at $91.85 per barrel and Brent at $104.72, as Middle East shipping risks and supply disruptions offset optimism over easing U.S.-Iran tensions.

Weekly Roundup

The three benchmark stock indexes at Wall Street advanced for the week ended Oct. 9, with the Dow Jones rising 0.9%, the S&P 500 gaining 1.2% and the Nasdaq Composite adding 0.6%. Investor sentiment was supported by optimism over President Donald Trump's remarks on Iran, AI-driven technology strength and anticipation of third-quarter earnings and inflation data. However, elevated oil prices, Treasury yields and weakening consumer sentiment tempered the rally.

Economic Data

Per the University of Michigan, preliminary consumer confidence for October was at 46.3. This is lower than the September number of 48.1.