U.S. stocks delivered their strongest weekly performance of the year, with major indexes rallying as investors welcomed President Trump's announcement of a cease-fire agreement between the U.S. and Iran. The diplomatic breakthrough provided relief to markets that had been on edge amid escalating tensions in the Middle East, pushing equity prices higher for consecutive sessions.

The positive momentum carried through Thursday as Wall Street celebrated the diplomatic resolution. However, Friday's trading session saw stocks stumble after a government report revealed consumer prices had ticked upward, largely driven by ongoing conflict-related supply chain disruptions. Inflation data tempered the week's enthusiasm as investors recalibrated their expectations.

Despite the Friday pullback, the weekly gains remained substantial, demonstrating how geopolitical developments can quickly shift market sentiment. The pause in hostilities offers potential stability for oil markets and supply chains, though analysts caution that the situation remains fluid.