Equity Markets Rise Intraday as Trump Sets Out Conditions For Iran Deal

Equities on Wall Street rose intraday as President Donald Trump laid out conditions that Iran must agree to as part of a peace agreement.

The Dow Jones Industrial Average was up 0.6% at 50,979.9 after midday Friday, while the Nasdaq Composite rose 0.3% to 26,988.6. The S&P 500 added 0.3% to 7,584.8. All three indexes logged closing highs in the previous session.

Barring technology and financials, all sectors were in the red, led by consumer staples.

In a social media post Friday, Trump said he was heading to the White House Situation Room "to make a final determination" regarding the Middle East conflict. He also announced an end to the naval blockade of Iranian ports.

Trump said that Iran must permanently forgo capabilities that lead to nuclear weapon development and allow unrestricted shipping traffic through the Strait of Hormuz.

Axios reported Thursday that the US and Iran had agreed to a memorandum of understanding to extend a ceasefire between the countries and begin talks on Tehran's nuclear program. However, Trump hadn't signed off on the deal, according to the report.

West Texas Intermediate crude oil was down 2.5% at $86.70 a barrel intraday, while Brent fell 2% to $91.81.

"While significant hurdles remain, the market is reacting to the prospect of a supply surge once hundreds of tankers loaded with crude oil and refined fuels are released from the Persian Gulf," Saxo Bank said in report Friday. "In the months ahead, however, demand to replenish depleted global inventories is likely to provide support, potentially lifting the price floor compared with pre-war levels."

US Treasury yields were mixed intraday, with the 10-year rate little changed at 4.44% and the two-year rate falling 2.7 basis points to 4%.

In company news, Dell Technologies (DELL) shares were up nearly 29% intraday, the best performer on the S&P 500. Late Thursday, the company reported record fiscal first-quarter results that surpassed Wall Street's estimates amid a surge in demand for artificial intelligence-optimized servers. It raised its fiscal 2027 outlook.

NetApp (NTAP) surged 26% after announcing its quarterly results, the second-biggest gainer on the S&P 500.

Other tech names were also notable gainers intraday, including Salesforce (CRM), which advanced 9%, IBM (IBM) and Microsoft (MSFT).

Sentinelone (S) shares were down 6.3% intraday. The cybersecurity company delivered a solid first-quarter performance that appears to be sustainable amid strong underlying trends, BofA Securities said in a Friday client note.

The brokerage attributed the sell-off to the company's "conservative" guidance that raises questions around growth durability. But BofA views the pullback as an attractive entry point for investors, citing underlying momentum.

Gold was up 1.6% at $4,602.50 per troy ounce, while silver edged up 0.1% to $76 per ounce.

High Treasury Yields Unlikely to Derail Equity Rally, Wells Fargo Says

A sharp jump in Treasury yields following the Middle East conflict is unlikely to dampen investor appetite for equities, given corporate earnings growth and excitement surrounding artificial intelligence, Wells Fargo Investment Institute said in a note.US Treasury yields have risen dramatically since late February amid rising inflation, which could prompt the Federal Reserve to keep interest rates steady for longer than expected or even raise them. The 10-year yield advanced to as high as 4.69% on May 19 from about 3.9% on Feb. 27, a day before the Iran war began.As yields rise, borrowing costs often move higher, which could weigh on the equities market.But yields are not high enough yet to "derail the stock market," Wells Fargo Investment Institute said in a note e-mailed toon Friday. Wall Street's major indexes hit new record highs this week."For now, several forces are helping offset that pressure (from higher rates)," Tony Miano, investment strategy analyst at Wells Fargo Investment Institute, wrote. "Corporate earnings have generally been better than expected, the job market has stayed resilient, and enthusiasm around (AI) continues to support many technology stocks."S&P 500 companies' most recent results have shown earnings growth of about 28% from a year earlier, more than double the FactSet estimate ahead of the reporting season, Oppenheimer Asset Management said Tuesday.Besides earnings momentum and an AI boom, there's been some optimism around prospects of a US-Iran deal to end their conflict."Technology and AI-related companies now make up a large share of the S&P 500 Index, so their strength can have an outsized effect on the overall index," Miano said. "We believe many of these companies also have strong revenue growth expectations for this year, which may help cushion some of the drag from higher borrowing costs."Wells Fargo believes a significant stock market pullback could be triggered by either slowing AI momentum or a "more meaningful" increase in rates, such as the 10-year yield nearing 5%."The pace of rate moves also matters," Miano said. "Recently, yields have been especially volatile, and sharp swings can make investors uneasy. They can also make it harder for companies to plan financing and borrowing needs, which may add pressure to stock prices."

Best Buy's Post-Earnings Rally Leaves Shares More Evenly Balanced, UBS Says

Best Buy's (BBY) sharp rally following stronger-than-expected fiscal first-quarter results leaves the shares more evenly balanced in the near term, UBS Securities said in a report.The electronics retailer on Thursday reported adjusted earnings of $1.28 a share in the three months ended May 2, up from $1.15 a year earlier, while revenue rose to $8.94 billion from $8.77 billion. Both topped Wall Street's estimates. The stock jumped 16% after the results and added 2.9% on Friday.UBS said it still expects Best Buy to deliver outsized earnings growth of more than 7% and sees momentum continuing into May, helped by broad-based category gains and demand for newer products such as collectibles, wearables and AI glasses. Much of that optimism is now reflected in the stock, the report said.Best Buy reaffirmed its fiscal 2027 outlook and appears to have left some cushion in its near-term guidance, UBS said. Even so, lapping last year's Nintendo Switch launch and uncertainty around new TV demand may keep the shares trading in a range, the report said.Best Buy continues to show "it's a formidable specialty retailer that adapts well" to shifts in the consumer-electronics landscape, UBS said, adding that the CEO transition looming in November may contribute to a stop-and-start trading pattern.UBS downgraded its rating on Best Buy to neutral from buy and increased its price target to $86 from $85. The shares have climbed 15% this year.Price: $76.88, Change: $+2.14, Percent Change: +2.86%

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SentinelOne's Solid First Quarter Reinforces Confidence in Growth Durability, BofA Says in Upgrade

SentinelOne (S) delivered a solid first-quarter performance that appears to be sustainable amid strong underlying trends, BofA Securities said in a Friday client note.The cybersecurity company reported an adjusted earnings beat late Thursday as revenue surged 21% year over year. SentinelOne maintained its full-year guidance, while announcing a plan to reduce full-time employees by around 8%."The quarter highlighted strengthening execution and continued platform traction," BofA analyst Tal Liani wrote. "Importantly, growth is becoming more diversified: (artificial intelligence) security (annual recurring revenue) nearly doubled, while data and cloud ARR accelerated."However, the stock slid 12% intraday Friday.Liani attributed the sell-off to SentinelOne's "conservative" guidance that raises questions around growth durability. But Liani views the pullback as an attractive entry point for investors, citing underlying momentum.BofA upgraded its rating on the stock to buy from neutral and raised the price target to $20 from $16."Our upgrade reflects growing confidence in the durability of 20%+ revenue growth, a clear path to margin expansion, and tangible signs of improved execution across new markets and customer segments," Liani said.The company's "conservatism" likely reflects a prudent approach under a new chief financial officer, rather than concerns over demand deterioration, Liani said. SentinelOne appointed Sonalee Parekh as CFO in March.SentinelOne expects to incur a one-time charge of approximately $25 million in connection with its restructuring plan."We have been actively refining our team structures and go-to-market focus, while accelerating our internal use of AI," Chief Executive Tomer Weingarten said during an earnings call Thursday, according to a FactSet transcript.The layoffs will drive about $45 million in annualized cost savings, Parekh told analysts."This provides us with the financial flexibility to purposefully reinvest in our key growth areas, while continuing to drive significant operating margin expansion," Parekh said. "With our strong growth profile, clear technology leadership, and growing structural tailwinds, we have all the ingredients to scale into a multibillion-dollar, highly profitable, durable business."Price: $15.87, Change: $-2.16, Percent Change: -11.96%

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High Treasury Yields Unlikely to Derail Equity Rally, Wells Fargo Says

Best Buy's Post-Earnings Rally Leaves Shares More Evenly Balanced, UBS Says

SentinelOne's Solid First Quarter Reinforces Confidence in Growth Durability, BofA Says in Upgrade