The U.S. stock market closed higher on Friday, with all three major indices posting gains, driven by a broad-based risk-on tone. The S&P 500, Nasdaq Composite, and Dow Jones all recorded their highest closes since mid-March, with the S&P 500 notching its first close above 7,100. The Nasdaq Composite achieved its longest winning streak since 1992, with the index up over 1.5% for the day. The Dow Jones Industrial Average climbed over 800 points, while the S&P 500 and Nasdaq Composite surged by around 1.2% and 1.5%, respectively. The rally was fueled by positive sentiment surrounding the potential reopening of the Strait of Hormuz, which was announced by Iran's foreign minister. This development has eased concerns about global oil supply disruptions and supported risk appetite.

The market's performance was largely driven by macroeconomic factors, with the reopening of the Strait of Hormuz being the most significant driver. The announcement has led to a decline in oil prices, which has been supportive for risk assets. Additionally, the market saw gains in the technology sector, with Advanced Micro Devices surging on AI demand momentum. However, Netflix's slump was noted before the market open, which could have had a slight dampening effect on sentiment. Overall, the market's performance was characterized by a broad-based rally, with all sectors contributing to the gains. The risk-on tone was evident in the market's performance, with investors taking advantage of the positive developments in the geopolitical landscape.