US stocks advanced on Friday as falling oil prices lifted sentiment and investors awaited the highly anticipated market debut of SpaceX, a listing that could provide a fresh test of appetite for artificial intelligence-related stocks.The S&P 500 rose 0.6%, while the Dow Jones Industrial Average gained 480 points, or 1%, as of 11:11 am Eastern time. The Nasdaq Composite was up 0.4%, AP reported.Markets were supported by a 3.1% decline in Brent crude prices to $87.58 a barrel, extending losses for the week. Oil has retreated since US President Donald Trump on Thursday withdrew his threat to launch strikes on Iran and said a potential deal with Tehran could be near.A settlement could reopen the Strait of Hormuz, allowing oil tankers to resume shipments from the Persian Gulf. The waterway’s near closure since the conflict began had pushed Brent crude from roughly $70 a barrel and fuelled inflationary pressures globally.Investors, however, have seen similar optimism before. Markets have repeatedly rallied on hopes of an end to the Iran conflict, only to reverse when expectations were not met.The larger focus for Wall Street over the past week has been the sharp swings in AI-related stocks. After powering to record highs, several high-profile names have come under pressure amid concerns that valuations had risen too quickly on enthusiasm surrounding artificial intelligence.Broadcom fell 1% on Friday, making it one of the bigger drags on the S&P 500.Some market participants believe money is being shifted out of existing AI stocks and into upcoming public offerings, including SpaceX and other large AI-linked IPOs.SpaceX shares are scheduled to begin trading on the Nasdaq later in the day. Elon Musk’s rocket company also has significant investments in artificial intelligence and had accumulated $29.1 billion in debt as of the end of March.If the stock holds its offering price, SpaceX would command a market value of $1.77 trillion, placing it close to Broadcom and Meta Platforms, the sixth and seventh most valuable companies on Wall Street.Elsewhere, Adobe declined 6.5% despite reporting quarterly profit and revenue that exceeded analysts’ expectations.The stock has fallen 42% so far this year. The company also announced that its chief financial officer will leave on Monday. Adobe is already searching for a successor to chief executive officer Shantanu Narayen, who said in March that he would step aside after 18 years leading the company.In the bond market, the yield on the 10-year US Treasury note rose to 4.48% from 4.45% late Thursday, recovering some of the sharp decline seen after oil prices dropped following Trump’s comments.Higher bond yields can weigh on economic activity and pressure valuations across stocks and cryptocurrencies. They tend to hit the most expensive assets particularly hard, with some critics arguing that the AI sector has entered bubble territory.Yields also received support from a stronger-than-expected reading on US consumer sentiment. A preliminary survey from the University of Michigan showed confidence improved by more than economists had anticipated, with consumers citing some relief from lower petrol prices earlier in the month.Global markets also advanced. South Korea’s Kospi surged 4.6%, Tokyo’s Nikkei 225 gained 2.8% and France’s CAC 40 rose 1.9%, according to AP.
