Megacap earnings and central bank week lift U.S. stocks

The S&P 500 and Nasdaq reached new intraday records on Friday as investors weighed megacap earnings and a busy week of central bank meetings while monitoring diplomatic developments in the Middle East.

Reports that Iran's foreign minister would travel to Islamabad and that U.S. envoys, including Jared Kushner, would take part in Pakistan-mediated talks reduced immediate risk aversion. At the same time, Brent crude rose about 16% and WTI roughly 11% for the week as shipping through the Strait of Hormuz remained largely disrupted.

More than 80% of S&P 500 companies that have reported so far beat expectations. A large rally in Intel shares helped the technology sector lead gains on Friday. Five of the largest U.S. megacap companies are scheduled to report next week.

The Federal Reserve meets Wednesday and is expected to hold rates in Chair Jerome Powell's final meeting in that role. The European Central Bank and the Bank of England meet Thursday and are also forecast to pause. The Bank of Japan meets Tuesday and could surprise markets if consumer prices accelerate while real interest rates remain negative.

Key economic releases include China's manufacturing PMI on Thursday, where a reading near 49.9 would indicate a potential return to contraction, and Australia's consumer price index on Wednesday, estimated near 4.6%.

Currency and bond markets reflected mixed risk sentiment. The U.S. dollar index dipped 0.11% to 98.71 on Friday but remained on track for about a 0.5% weekly gain. EUR/USD traded near $1.1699 and the yen was around 159.62 per dollar.

Stocks were positioned to complete a fourth straight week of gains, the longest streak since late 2024. Market participants will track megacap earnings and central bank statements next week for fresh signals on near-term positioning.