U.S. stock markets closed higher on Friday as investors welcomed the strong debut of SpaceX on the Nasdaq and grew increasingly optimistic about a potential peace agreement between the United States and Iran.

The positive sentiment helped lift major indexes throughout the trading session. The S&P 500 gained 0.5% to close at 7,431.46, while the Nasdaq Composite rose 0.31% to finish at 25,888.84. The Dow Jones Industrial Average added 353.51 points, or 0.7%, ending the day at 51,202.26.

A major driver of the rally was the highly anticipated public debut of SpaceX. The aerospace company began trading on the Nasdaq under the ticker symbol SPCX, opening at $150 per share, significantly above its IPO price of $135.

Investor demand pushed the stock more than 20% higher shortly after trading began. SpaceX eventually closed the session up 19% at approximately $161 per share, making it one of the most successful market debuts in recent history.

The strong performance of SpaceX boosted confidence across Wall Street, with some analysts suggesting the rally reflected renewed investor appetite for growth stocks and technology companies. The successful IPO also sparked discussion about whether other companies in the market may currently be undervalued.

Markets also received support from growing optimism surrounding diplomatic negotiations between Washington and Tehran. Reports indicating that a potential peace agreement may be nearing completion helped ease concerns about geopolitical tensions and their impact on global energy markets.

Investors viewed the combination of strong corporate performance and improving international relations as a positive signal for market stability and future economic growth.

As trading concluded, Wall Street ended the week on a stronger note, with SpaceX’s record-breaking debut and hopes for a U.S.-Iran agreement helping to drive gains across major indexes.