Major US stock indices advanced on Friday, with SpaceX climbing on its first day of trading as investors continued to monitor the potential for a provisional peace agreement between the United States and Iran.

The S&P 500 gained 0.5% after the Prime Minister of Pakistan indicated that all parties had reached a consensus on the final text of a peace accord.

Market sentiment received a further lift when Iran's Foreign Minister later stated that the US and Iran had "never been closer" to reaching a memorandum of understanding.

The technology-heavy Nasdaq 100 Index rose 0.6%. Both major indices recorded weekly gains.

SpaceX opened its first trade on the Nasdaq at $150, marking an 11% premium to its $135 initial public offering price. The stock surged as high as $176.52 during the session before closing at $161.11.

Oil prices faced pressure throughout the day on reports that the US and Iran were close to signing a deal to reopen the Strait of Hormuz during next week's G7 leaders' summit.

A senior US administration official noted that the likelihood of Iran signing an agreement was "probably in the 80% to 85% range, but not 100%."

Helima Croft, Global Head of Commodity Strategy at RBC Capital Markets, commented, "Despite differences in terms and ongoing drone attacks, the market continues to price in expectations for a deal."

The University of Michigan's consumer sentiment index came in better than expected. US consumer confidence rose for the first time in four months in early June, as a pullback in gasoline prices provided relief for Americans grappling with soaring inflation.

Samuel Tombs, Chief US Economist at Pantheon, stated in a report, "The decline in medium- to long-term inflation expectations alleviates some of the pressure on the Federal Reserve."

Investors will focus next week on the first policy meeting under new Federal Reserve Chair Kevin Walsh.

With energy prices remaining elevated, traders are betting that the Fed's next move will be to raise interest rates by early next year.

At the close, the S&P 500 was up 0.5% at 7,431.46.

The Dow Jones Industrial Average rose 0.7% to 51,202.26.

The Nasdaq Composite Index gained 0.3% to 25,888.84.

The Nasdaq 100 Index advanced 0.6% to 29,635.95.

The Russell 2000 Index increased 0.8% to 2,943.992.