S&P 500, Nasdaq Hit Records on Peace Deal Optimism
Stocks extend gains as US-Iran ceasefire extension lifts sentiment. Nasdaq posts strongest 11-day run on record amid tech-led rally.
Wall Street keeps climbing the wall of worry—and just hit new highs.
The S&P 500 rose to 7,033 on Wednesday, up 0.8% and marking a fresh record close. The Nasdaq Composite jumped 1.59%, posting its strongest 11-day run in history. The Dow slipped 0.15%, held back by healthcare and industrial names.
Futures are higher again Thursday morning. The rally shows no signs of exhaustion.
What's Driving It
Three catalysts converged:
Peace deal momentum. President Trump said Wednesday that the Iran war is "very close to over." The White House confirmed an "in principle agreement" to extend the two-week ceasefire, with talks moving to Pakistan for a potential second round.
Markets have spent weeks pricing in geopolitical risk. The prospect of de-escalation triggered aggressive buying across risk assets. Oil pulled back, reducing inflation concerns and giving the Fed more room to maneuver.
Tech reassertion. Technology stocks led Wednesday's gains, with semiconductors and mega-cap software posting outsized moves. NVIDIA rose 3%, Apple gained 2%, and the broader tech sector outperformed by 80 basis points.
The AI trade that stalled in January is back. ASML's guidance raise and TSMC's earnings beat reinforced the demand story. Investors are rotating back into growth.
Bank earnings delivering. Morgan Stanley and Bank of America reported strong results, capping a solid bank earnings season. Credit quality held up, trading desks thrived, and buybacks continue.
The Numbers
| Index | Close | Change | YTD |
|---|---|---|---|
| S&P 500 | 7,033 | +0.8% | +8.2% |
| Nasdaq Composite | 18,847 | +1.6% | +11.4% |
| Dow Jones | 43,521 | -0.15% | +4.1% |
The S&P 500 has now erased all losses from the early-April war shock. The index is up 8.2% year-to-date, outpacing most strategist expectations heading into 2026.
Sector Performance
Technology led with a 1.4% gain. Consumer discretionary rose 1.1%, boosted by Amazon and Tesla. Communication services added 0.9% as Meta and Alphabet participated.
Laggards included materials (-0.6%), industrials (-0.3%), and utilities (-0.2%). The defensive rotation that dominated early April has reversed as risk appetite returns.
What Comes Next
Thursday brings more earnings: Netflix reports after the close, with investors watching subscriber trends and ad-tier growth. PepsiCo and Charles Schwab report before the open.
TSMC's results landed overnight, beating estimates on both profit and margins. The stock rose 2% in early trading, adding fuel to the semiconductor rally.
The economic calendar is light until next week's durable goods and housing data. That leaves earnings and geopolitical headlines as the primary drivers.
Technical Picture
The S&P 500 cleared resistance at 6,950 and closed above 7,000 for the first time. The next technical target is 7,200, which several strategists have cited as year-end fair value.
Breadth has improved. The percentage of S&P 500 stocks above their 50-day moving average rose to 68%, up from 42% at the April lows. Rallies with broadening participation tend to persist.
The VIX fell to 15.3, its lowest level since early March. Options markets are pricing in calm. That's both a comfort and a warning—complacency can precede corrections.
The Risk
The bull case requires the ceasefire to hold. Iran's foreign ministry has sent mixed signals, and several sticking points remain unresolved: ballistic missiles, sanctions relief, regional proxy activity.
A breakdown in talks would spike oil prices and trigger risk-off positioning. The early April drawdown showed how quickly sentiment can shift.
But for now, markets are betting on peace. And that bet is paying off.
Bottom Line
The S&P 500 just set a record high with the Nasdaq posting its best 11-day streak ever. Earnings are beating, geopolitical risk is fading, and tech leadership has returned.
Momentum favors the bulls. The question is whether the foundation—Iran de-escalation and continued earnings strength—holds through the rest of earnings season.