Dow Scales New Heights Amid Crude Swings

The Dow closed at a new record of 50285, gaining 0.6% after erasing early losses. This rally followed a sharp midday reversal in oil prices, with Brent crude falling over 2% as investors grew hopeful about progress in U.S.-Iran negotiations.

Shares in the quantum computing sector soared after reports emerged of a $2 billion U.S. government funding plan to boost the industry.

The Commerce Department announced $2 billion in funding allocated to nine quantum computing companies, including IBM, Rigetti, and GlobalFoundries, with the U.S. government taking equity stakes in return. The move signals a major federal commitment to next-generation computing infrastructure.

NVIDIA shares declined nearly 2% despite the company reporting better-than-expected first-quarter results and issuing a rosy revenue outlook. Investors appeared cautious about the sustainability of its rapid growth amid intensifying competition in the AI chip market and a broader cooling of the recent artificial intelligence stock boom.

Walmart reported impressive sales and profit growth, yet shares fell as investors fretted over the retailer’s warning that rising fuel costs and a 3.8% inflation rate outpacing wages for the first time could pressure price-conscious consumers. The ongoing Iran conflict’s impact on energy and supply chain costs added to the cautious outlook.

Yields on the 10-year Treasury note slipped to 4.56% on Thursday, pulling back from recent highs that reached their most elevated levels since early 2025. The decline in yields was closely linked to the retreat in oil prices, providing relief to smaller companies in the Russell 2000, which outpaced major indexes with a 0.9% gain.

Oil prices resumed their rally after declining for three straight sessions as investors remained sceptical about a breakthrough in US-Iran peace talks, with Iran’s Supreme Leader earlier forbidding uranium removal. While statements from the U.S. had signalled the peace deal was imminent, the Iranian leadership’s reported stance of keeping enriched uranium within their country has raised worries of an extended conflict, keeping oil supplies disrupted for longer.

Asia-Pacific markets opened higher Friday as investors assessed U.S.-Iran diplomatic efforts at reaching a peace deal in the Middle East.

Over the last six trading sessions, Nifty has slipped into an alternating pattern of one session of gains followed by one of losses. Nifty opened 171 points higher on the back of strong global cues, touched its intraday peak of 23859 within the first few minutes, but failed to sustain momentum and reversed sharply. It declined more than 260 points from the high and eventually closed at 23654, down 4 points yesterday.

Immediate support is now seen near 23,400. On the upside, a decisive close above 23,800 could trigger a pullback towards 24016.

Indian markets are poised to open mildly higher on conducive global cues.