S&P 500 and Nasdaq Hit Record Highs as Markets Rally on Iran War De-escalation Hopes- U.S. stock markets climbed to fresh milestones on Thursday, extending a strong weekly rally fueled by growing investor optimism that tensions in the Iran conflict may be moving toward a resolution. The gains pushed major indexes into record territory, with both the S&P 500 and Nasdaq Composite setting new highs.
The S&P 500 rose about 0.3%, while the Nasdaq Composite also gained roughly 0.3% during the session. The Dow Jones Industrial Average added around 77 points, or 0.2%. Despite the modest daily increases, the broader trend remained strongly positive for the week, with the S&P 500 up about 3%, the Nasdaq advancing more than 5%, and the Dow rising about 1%.
The rally has been supported by a combination of geopolitical developments and improving investor sentiment. Markets reacted positively after comments from U.S. President Donald Trump in a prerecorded Fox Business interview suggested that the Iran conflict could be nearing an end. Trump stated that the situation was “very close to over,” adding that Tehran was eager to reach a deal.
Those remarks helped reinforce expectations that diplomatic progress may be possible in the coming weeks. Additional developments also contributed to the optimism, including Trump’s announcement that talks between Israel and Lebanon would take place on Thursday. Market participants have been closely watching such diplomatic signals, as reduced regional tensions are often viewed as supportive for global risk assets.
Negotiations between Washington and Tehran remain in early stages. According to a White House official speaking anonymously due to the sensitivity of internal discussions, a second round of talks is under consideration but has not yet been formally scheduled. Investors are therefore pricing in hope rather than confirmed outcomes, with sentiment shifting rapidly based on political signals.
The recent rally has been particularly strong across technology shares, which have led gains throughout the week. On Wednesday, the Nasdaq recorded its 11th consecutive day of gains, marking its longest winning streak since November 2021. The index also crossed a significant milestone, closing above 24,000 for the first time. Meanwhile, the S&P 500 closed above 7,000 for the first time in its history, underscoring the strength of the current momentum.
Much of the market’s recent performance has been attributed to expectations that easing geopolitical tensions could reduce uncertainty and support continued economic stability. Investors have also rotated back into equities after the S&P 500 erased earlier losses linked to the outbreak of the Iran conflict, effectively returning to pre-conflict levels in terms of sentiment and positioning.
However, some analysts are urging caution despite the rapid gains. Tim Hayes, chief global investment strategist at Ned Davis Research, noted that while the market has recovered strongly, broader participation will be necessary for sustained upside. Speaking on CNBC’s “Closing Bell: Overtime,” he warned that the current rally may be too concentrated and could face challenges if it fails to broaden beyond a handful of leading sectors, particularly technology.
Hayes also suggested that investors may be moving too quickly to re-enter risk assets. While momentum has clearly favored equities in recent sessions, he cautioned that the durability of the rally remains uncertain. Whether gains continue will likely depend on confirmation of diplomatic progress and a broader strengthening of market participation.
For now, however, optimism continues to dominate trading floors. With major indexes at record levels and geopolitical developments hinting at potential de-escalation, investors are closely watching upcoming negotiations for signs of whether the rally has further room to run—or whether it is simply a short-term response to shifting headlines.
U.S. Signals Military Readiness as Tensions Rise with Iran | Maya
