NEW YORK, New York - U.S. stocks rose sharply on Friday despite continuing uncertainty over the U.S.-Iran war, and the recent surge in Treasury yields. The 30-year Treasury bond on Friday rose to 5.27 percent, just shy of its near-20 -year high of 5.34 percent earlier in the week. The 10-year bond yield also rose 3 basis points Friday to 4.732 percent.

"The market has adjusted to 4 percent to 5 percent" on the 10-year yield, Leo Kelly, founder and CEO of Verdence Capital Advisors told CNBC Friday. "If we had some sort of event and the market broke out and went to the 6 percent to 7 percent range on the 10-year, that's a problem, and the market will react poorly to that," Kelly said.

The Dow Jones Industrial Average settled at 53,276.81, climbing an impressive 517.60 points for a gain of 0.98 percent. Volume on the blue-chip index reached 414.952 million shares as investors piled into cyclical names, driving the Dow to its best session of the week.

The broader Standard and Poor's 500 also finished higher, Friday closing at 7,674.30 after adding 33.14 points, a rise of 0.43 percent. Trading volume on the benchmark index came in at 2.615 billion, reflecting steady participation throughout the session. The index traded within a daily range of 7,660.06 to 7,697.11, holding comfortably above its 52-week low of 6,316.91 and remaining well shy of its high of 7,816.70.

The tech-heavy NASDAQ Composite joined the rally, advancing 113.29 points to end Friday at 26,180.46, a gain of 0.43 percent. Volume on the Nasdaq reached 5.533 billion, underscoring sustained interest in technology and growth names despite recent volatility.

Friday's rally was broad-based, with all three major U.S. indices finishing in the green and the Dow posting the most robust performance of the day. Investors appeared to shake off earlier hesitations, driving markets higher as the trading week came to a close.

U.S. Dollar Holds Steady, Aussie Surges as FX Markets Close Out Friday Session

Foreign exchange markets wrapped up the final trading day of the week with a relatively subdued tone for most major pairs, though the Australian dollar stood out with a notable rally against its U.S. counterpart.

The euro traded at 1.1679 against the U.S. dollar, marking a marginal gain of just 0.01 percent on the session, as investors largely held their positions heading into the weekend.

Against the Japanese yen, the greenback changed hands at 159.03, also rising by a fractional 0.01 percent, reflecting a lack of clear directional momentum in the pair.

The British pound firmed slightly, ending Friday at 1.3649 versus the dollar, an advance of 0.13 percent. The modest uptick came as traders digested the latest economic signals from the UK, though volumes remained relatively thin.

The standout mover of the day was the Australian dollar, which surged 0.84 percent to close at 0.7174 against its U.S. counterpart. The sharp gain suggests renewed risk appetite or potential supportive domestic data, though no single catalyst was immediately evident in late trading.

Meanwhile, the U.S. dollar strengthened against its northern neighbour, with the Canadian dollar slipping to 1.3766 per greenback, a decline of 0.17 percent for the loonie.

Against the Swiss franc, the dollar edged higher to 0.8011, posting a modest gain of 0.09 percent as the safe-haven currency softened slightly in quiet Friday trade.

Overall, the session was characterised by tight ranges and limited volatility, with the Australian dollar's outperformance providing the sole notable exception to an otherwise steady close to the trading week.

Global Stock Markets Split on Friday as Downturns in Asia Offset European Gains

World stock markets closed out the final trading session of the week with a mixed performance on Friday, as solid advances across Canadian, UK and European exchanges were partially tempered by slight declines in the Asia-Pacific region.

London's FTSE 100 closed at 10,816.56, climbing 68.40 points, or 0.64 percent. 

Canadian equities also enjoyed a strong session. The S&P/TSX Composite index rose 254.81 points to close at 36,620.23, an increase of 0.70 percent, with volume of 266.275 million shares traded on the exchange.

In Europe, benchmarks finished firmly in the green. In France, the CAC 40 rose 31.34 points to end at 8,484.43, up 0.37 percent.

Germany's DAX P settled at 26,136.56, adding 153.52 points for a gain of 0.59 percent.

The broader regional indices also saw positive movement. The EURO STOXX 50 I increased by 40.16 points to finish at 6,462.22, a rise of 0.63 percent, and the Euronext 100 Index closed at 1,938.94, up 5.38 points or 0.28 percent. Belgium's BEL 20 outperformed its peers with a robust gain of 63.55 points, settling at 5,807.17 for a 1.11 percent increase.

Asian markets, however, painted a more divided picture. In Hong Kong Friday, the HANG SENG INDEX finished at 26,009.46, gaining 310.97 points—a healthy increase of 1.21 percent. The STI Index in Singapore also rose, closing at 5,688.96 with a modest uptick of 17.05 points, or 0.30 percent.

In South Korea, the KOSPI Composite Index closed at 6,912.95, up 60.37 points for a 0.88 percent gain, with trading volume reaching 408,037. while Malaysia's FTSE Bursa Malaysia KLCI posted a fractional decline of 0.23 points to close at 1,736.48, a nearly flat drop of 0.01 percent.

In Japan, the Nikkei 225 fell sharply, losing 200.43 points to close at 66,016.36. In mainland China, the SSE Composite Index edged up 1.48 points to close at 3,905.20, a fractional gain of 0.04 percent, on volume of 1.74 billion shares.

In Australia, both major indices ended lower on Friday: the S&P/ASX 200 shed 24.90 points to finish at 9,058.90, a decline of 0.27 percent, and the broader ALL ORDINARIES fell 28.80 points to 9,269.70, down 0.31 percent. Meantime, across the Tasman, New Zealand's S&P/NZX 50 INDEX GROSS advanced 52.84 points to 13,972.66, an increase of 0.38 percent.

In India, the S&P BSE SENSEX barely moved, inching up a mere 3.11 points to 77,540.83, a change of 0.00 percent. Indonesia's IDX COMPOSITE rose 24.10 points to 6,525.69, gaining 0.37 percent.

Elsewhere in Asia on Friday, Taiwan's TWSE Capitalization Weighted Stock Index ended the day at 45,224.29, rising 290.55 points, equivalent to 0.65 percent.

In the Middle East most markets were closed on Friday and scheduled to reopen on Sunday. Israel's TA-125 however traded, rising 18.51 points to 4,059.40, a gain of 0.46 percent.

South Africa's Top 40 USD Net TRI Index posted the strongest performance of the session, soaring 190.71 points to 7,402.32, a jump of 2.64 percent.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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