US stocks rose on Friday, heading for weekly and monthly gains, supported by strong performance in the technology and artificial intelligence sector and reports pointing to a de-escalation in the Middle East.
During trading, the three major indices touched new record levels, on course to post weekly gains of more than 2% for the Nasdaq Composite and approximately 1% each for the S&P 500 and the Dow Jones.
On a monthly basis, the Nasdaq Composite is heading for gains of around 8%, compared with 5% for the S&P 500 and 2% for the Dow Jones.
Federal Reserve Governor Michelle Bowman warned against policymakers rushing to raise interest rates in response to the current rise in commodity prices stemming from the conflict in the Middle East.
Speaking at a conference held in Iceland, she said that responding to a temporary rise in energy prices would add unjustified constraints on monetary policy, negatively affecting economic activity and labour market conditions.
She added that research shows that when responding to temporary energy shocks, monetary policy should not be excessively restrictive, noting that any response must depend on the duration of the conflict with Iran.
New home sales in the United States recorded a significant decline in April, according to data from the US Department of Commerce.
The department said new home sales fell 6.2% in April to an annualised rate equivalent to 622,000 units, after rising 3.4% to an annualised rate equivalent to 663,000 units in March, according to revised data.
The sharp decline was driven by a steep fall in sales in the US Midwest, where they dropped 25%.
Sales also fell in the Northeast by 12.9% and in the South by 9.8%, while sales in the West rose 18.7%.