U.S. markets closed mostly higher on Friday, with the Nasdaq and S&P 500 finishing near record highs, supported by a strong rally in Apple shares, which climbed 3.9%. Sentiments remained upbeat after reports indicated that Iran had sent its latest proposal for negotiations with the United States through Pakistani mediators. Meanwhile, traders also reacted to data from the Institute for Supply Management (ISM), which showed that U.S. manufacturing activity expanded for the fourth straight month in April. The ISM manufacturing PMI stood at 52.7, unchanged from March. While a reading above 50 still indicates growth, street had expected the index to inch up to 53.0.

On the sectoral front, airline stocks recorded a strong upward move during the session, driving the NYSE Arca Airline Index higher by 2.2%. Software stocks also showed notable strength, rebounding after Thursday’s sharp decline, with the Dow Jones U.S. Software Index rising 1.9%. Pharmaceutical stocks extended their gains following the previous session’s rally. In contrast, energy stocks faced selling pressure, tracking the decline in crude oil prices.

Nasdaq increased 222.13 points or 0.89 percent to 25,114.44, and S&P 500 gained 21.11 points or 0.29 percent to 7,230.12, while Dow Jones Industrial Average decreased 152.87 points or 0.31 percent to 49,499.27.