U.S. markets ended sharply higher on Friday, with the Nasdaq and S&P 500 closing at record highs, amid easing geopolitical tensions in West Asia after Iran's Foreign Minister stated that the passage for all commercial vessels through Strait of Hormuz is completely open for the remaining ceasefire period. However, U.S. President Donald Trump stated that the American blockade will remain in full force until Tehran reaches a deal with the US, including on its nuclear program. On sectoral front, AI stocks rallied as the rebound in risk sentiment supported speculative sectors. Amazon, Microsoft, Nvidia, and Tesla each gained more than 1%, while Oracle declined over 3%. Meanwhile, Netflix dropped more than 10% after its Q2 guidance fell short of expectations.

Dow Jones Industrial Average jumped 868.71 points or 1.79 percent to 49,447.43, Nasdaq surged 365.78 points or 1.52 percent to 24,468.48, and S&P 500 increased 84.78 points or 1.2 percent to 7,126.06.