The record-setting rally in stocks set new milestones on Friday after Iran said the Strait of Hormuz was "completely open" following Israel's ceasefire with Lebanon.

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The S&P 500 topped 7,100 for the first time ever, two days after the benchmark index ended above 7,000 for the first time. More impressively, the Nasdaq Composite's 13-day streak of gains marked the best run for the tech-led index since 1992.

Oil prices plunged alongside the rally in stocks, with Brent crude down 9% to $90.56 a barrel. West Texas Intermediate crude fell 11% to $84.56.

The re-opening of the Strait, a critical passage for oil and other commodities, was announced by Iran's Foreign Minister in a post on X Friday morning. The news has removed one of the market's most pervasive overhangs, with stocks being dragged lower for most of March due to fears of prolonged supply disruptions in the Middle East.

"In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran," Foreign Minister Seyed Abbas Araghchi wrote.

Trump followed up with his own update in a post on Truth Social.

Major indexes soared, with the Dow advancing as much as 1,100 points and the S&P 500 on track to notch a 12-day winning streak.

Here's where US indexes stood at the 4 p.m. ET closing bell on Friday:

The news also led investors to raise their hopes for Fed rate cuts, a major catalyst for equities that had slipped further out of sight as oil prices rose last month. The odds that the Fed could trim rates a quarter basis point or more by the end of the year jumped to 52% on Friday, up from a 30% probability on Thursday, according to the CME FedWatch tool.

Still, some think markets aren't necessarily in the clear when it comes to the inflationary impact of the war. Joseph Bruseulas, the chief economist at RSM US, said it could take years to restore the lost oil supply from energy infrastructure that was destroyed in the Middle East amid the conflict.

"Oil prices will ease as will gasoline prices. However do not expect a return to pre war prices," he said in a post on X.

Investors, though, have proven eager to jump back into risk assets since the ceasefire with Iran took effect. Markets are feeling more confident that the conflict in the Middle East will soon draw to an end, particularly as President Donald Trump has continued to reassure investors about progress on a peace deal.

Speaking at an event in Las Vegas on Thursday, Trump said that he believed that the conflict with Iran was "going along swimmingly," and that the war "should be ending pretty soon."

Much of the market's gains have been driven by investors returning to tech stocks, which have been beaten down amid AI fears and the broader Iran-fueled sell-off. The iShares Expanded Tech-Software Sector ETF, which tumbled into a bear market in early 2026, is up 14% since last Friday.

"The stock market's Iran-driven correction is likely over now that stocks have made new highs," Paul Stanley, the CIO of Granite Bay Wealth Management, wrote in a note. "While corrections can involve a retest of the low, we would view any retests as a buying opportunity for long-term investors."