Tech Surges Nearly 3% as Intel Soars and Iran Peace Hopes Cool Oil Prices

The stock market today was a tech story, full stop. Technology (XLK) ripped +2.84% on Friday, more than tripling the next-best sector's gain and single-handedly dragging the S&P 500 to within striking distance of record highs. The Nasdaq Composite climbed +1.63%, while seven of eleven sectors actually finished in the red.

That's not a broad rally. That's one sector doing all the heavy lifting.

Intel was the headline grabber, surging roughly 23% in a single session on earnings results that lit up the semiconductor space. Meanwhile, signs of potential Iran peace talks in Pakistan pulled crude oil lower, giving risk-on sentiment an extra push.

But the Dow told a different story, slipping -0.16% as the old-economy names that dominate the index couldn't keep up with the tech freight train.

Market Scorecard

The S&P 500 closed at 7,165.08, hovering just below Thursday's all-time high levels. The VIX dropped -3.52% to 18.63, a sign that fear was fading into the weekend.

Treasury yields drifted lower across the curve, with the 5-Year falling 3.2 basis points, as the bond market quietly digested the same geopolitical headlines that were lifting equities.

What Happened in the Stock Market Today?

The day's biggest individual mover was Intel, which surged roughly 23% on earnings. That kind of single-session pop in a mega-cap semiconductor name sends shockwaves through the entire tech sector, and today was no exception. The semiconductor rally was broad enough to push XLK to nearly triple the S&P 500's gain.

Then there was the IPO of the day. X-Energy, the advanced nuclear reactor company backed by Amazon, raised over $1 billion in the largest nuclear public offering on record. Shares priced at $23, well above the initial $16-$19 range, and closed up 26% on their first day of trading.

The company has an order pipeline of more than 11 gigawatts, with partnerships spanning Amazon, Dow, and Centrica. Unlike competitors Oklo and NuScale, which went public via SPAC transactions, X-Energy took the traditional IPO route.

Geopolitics also played a supporting role. Reports that Iran's foreign minister was expected to arrive in Islamabad for discussions about a possible second round of negotiations with the U.S. gave traders a reason to take risk. WTI crude slipped -0.96% to $94.93 per barrel on the news. This followed Thursday's announcement that Israel and Lebanon agreed to extend their ceasefire by three weeks.

Trump also made waves on the trade front, threatening a "big tariff" on the U.K. if it doesn't drop its 2% digital services tax on U.S. tech companies like Google, Meta, and Apple. No specific figure was given, but the comments added another layer of uncertainty to transatlantic trade relations ahead of King Charles's state visit to the U.S. next week.

Sector Performance

The sector divergence on Friday was stark. Technology at +2.84% was the only sector that posted a gain above 1%, fueled by Intel's earnings explosion and broader semiconductor strength. Consumer Discretionary rode tech's coattails to second place at +0.80%, while the other sectors were essentially flat or red.

At the bottom, Communication Services (XLC) fell -1.57% and Health Care (XLV) dropped -1.40%. Defensive sectors like Consumer Staples and Real Estate also slipped, a classic sign of sector rotation into growth names.

Traders weren't looking for safety on Friday. They were chasing chips.

The Bigger Picture: AI, Nuclear, and Tariff Tensions

Friday's session told a broader story about where capital is flowing. Intel's earnings beat reignited confidence in the semiconductor cycle. X-Energy's blowout IPO, the largest nuclear public offering ever, underscored the market's appetite for AI-adjacent infrastructure plays.

The company's partnerships with Amazon and others, combined with an 11-gigawatt order pipeline, gave investors a tangible way to bet on the electrification theme.

U.S. equity fund inflows continued to rise on earnings optimism and the AI boost. The Fear & Greed Index sat at roughly 68, firmly in greed territory, confirming the risk-on mood. For anyone tracking the stock market today, that sentiment reading aligned with the aggressive rotation into growth names.

But not everything was clean. Trump's tariff threat against the U.K. over its digital services tax added a wrinkle. The 2% levy targets revenues from search engines, social media, and online marketplaces, hitting names like Alphabet, Meta, and Apple directly. No specific tariff figure was given, but the rhetoric was pointed enough to keep trade watchers on alert.

Gold added +0.56% to close at $4,731.60, a modest bid that suggested some hedging even on a risk-on day. Bitcoin slipped -0.90% to $77,564.82, and Ethereum edged down -0.49% to $2,320.00. Crypto didn't participate in the equity enthusiasm.

What Should Traders Watch Next Week?

Next week brings a heavy slate. A wave of tech-led earnings reports will test whether Friday's semiconductor rally has legs, and a Fed meeting will give traders their next read on rate policy.

The S&P 500 is sitting just below all-time highs after Thursday's reversal, so the index enters the week at a decision point.

Iran negotiations in Islamabad will be worth monitoring over the weekend. Any progress, or lack of it, could move oil prices sharply at Monday's open. With WTI still above $94 and the Strait of Hormuz situation unresolved, energy markets remain a wildcard.

The stock market today showed that traders are willing to pay up for growth when earnings deliver. Whether that conviction holds through next week's gauntlet of reports and the Fed is the question heading into the weekend.