Dow, S&P 500, Nasdaq Rise as Tech Stocks Gain on Iran Talk Optimism

US stocks rose as investors awaited updates on US-Iran peace talks.

Electronic trading board displays rising US stock indexes amid optimism over geopolitical developments.

The S&P 500 gained 0.5%, while the Dow Jones Industrial Average—which reached a record high at one point—rose 0.6%. The tech-heavy Nasdaq Composite climbed 0.6%, according to Yahoo Finance.

Markets began the week on a weaker note amid concerns that persistent inflation could fuel expectations of additional Federal Reserve interest rate hikes.

However, reports of progress in US-Iran negotiations since Wednesday boosted optimism that one of the drivers of rising prices, particularly energy costs, could ease.

On Thursday, Marco Rubio and Iranian media signaled progress in diplomatic talks, though major sticking points reportedly remain.

Consumer concerns over fuel costs persisted. According to the University of Michigan, consumer sentiment dropped to a record low in May as inflation expectations increased.

Meanwhile, earnings season continued, with government contractor Booz Allen Hamilton reporting earnings above expectations but lower-than-forecast revenue.