S&P 500 and Nasdaq Reach Record Highs
Wall Street traded mostly higher on Thursday as growing optimism surrounding a potential end to the Iran conflict boosted investor sentiment and pushed major indexes toward fresh record levels.
The S&P 500 gained 0.2% to 7,380.65, while the tech-heavy Nasdaq Composite climbed 0.6% to 25,989.31. Both indexes reached new all-time highs during the session.
Meanwhile, the Dow Jones Industrial Average briefly reclaimed the 50,000 level earlier in the day before pulling slightly lower. The index later traded near 49,890 after reaching an intraday high of 50,130.
The Dow now sits close to its record peak of 50,512 reached in February.
Iran Peace Hopes Lift Market Confidence
Investor sentiment improved after reports suggested the United States and Iran are moving closer toward restarting formal peace negotiations.
According to reports, Washington and Tehran have been working with mediators on a framework designed to reopen talks aimed at reaching a long-term agreement.
The Wall Street Journal reported that negotiations could begin next week in Pakistan and continue over a month-long period focused on Iran’s nuclear program, sanctions relief, uranium enrichment, and inspection requirements.
President Donald Trump said at the White House on Wednesday that discussions with Tehran had gone “very good” over the previous 24 hours.
Trump also suggested the United States had effectively “won” the conflict and said military operations could end if Iran agrees to the proposed conditions.
However, he warned that further attacks could still occur if no agreement is reached.
Iran Delivers Mixed Messages on Negotiations
Iranian officials have offered conflicting signals regarding the latest peace proposal.
The country’s foreign minister reportedly confirmed Tehran is reviewing the U.S. framework and plans to provide a response through Pakistani mediators.
At the same time, other Iranian officials reportedly criticized the proposal as overly favorable to American interests.
According to CNN, Iran is expected to respond formally to mediators by Thursday.
Kyle Rodda, senior financial market analyst at Capital.com, said investors appear increasingly confident that both countries are committed to avoiding another escalation in the conflict.
Oil Prices Fall Below $100 Per Barrel
Oil prices extended their decline as traders assessed the possibility that the Strait of Hormuz could eventually reopen to normal shipping activity.
Brent crude futures fell 3.5% to $97.75 per barrel, while U.S. West Texas Intermediate crude dropped 3.5% to $91.71.
Despite the recent pullback, oil prices remain significantly above pre-war levels after surging during the conflict due to disruptions surrounding the Strait of Hormuz, which handles roughly one-fifth of global oil shipments.
Higher energy prices have already pushed U.S. gasoline prices above $4.50 per gallon, levels not seen since the peak of inflation pressures in 2022.
Trump said he had expected oil prices to climb even further during the conflict, potentially reaching $200 to $250 per barrel.
Labor Market Data Shows Continued Stability
Outside of geopolitical developments, investors also analyzed fresh U.S. labor market data ahead of Friday’s highly anticipated nonfarm payrolls report.
According to Challenger, Gray & Christmas, announced U.S. job cuts rose 38% month-over-month in April to 83,387, marking the highest April total since 2009.
Technology companies continued leading layoff announcements, with many firms citing artificial intelligence investments and restructuring efforts.
Meanwhile, the Labor Department reported that initial jobless claims increased slightly to 200,000 last week, remaining below analyst expectations of 205,000.
Continuing unemployment claims also declined to 1.766 million.
RSM US chief economist Joseph Brusuelas said the U.S. labor market remains relatively stable despite rising concerns surrounding layoffs and slowing economic growth.
Strong Earnings Season Continues Supporting Stocks
Corporate earnings also continued supporting Wall Street’s rally.
Deutsche Bank strategist Jim Reid said S&P 500 earnings growth is projected to accelerate sharply to 24.6% during the first quarter, marking one of the strongest earnings growth periods in years.
Reid noted that gains are no longer limited only to major technology companies, with all 11 sectors of the S&P 500 now reporting positive earnings growth for the first time in four years.
The ongoing artificial intelligence boom has remained a major driver of market enthusiasm, particularly after strong earnings reports from companies such as Alphabet, Microsoft, Meta, AMD, and Arm.
Capital.com analyst Kyle Rodda said a new wave of “AI mania” appears to be returning to markets, although he noted valuations are not yet at the extreme levels seen previously.
Earnings Movers: Arm, Tapestry, DoorDash and Whirlpool
Among notable earnings-related movers, Arm Holdings initially surged after reporting stronger-than-expected quarterly results and highlighting strong demand for its new AI data center chip.
However, the stock later reversed sharply and traded down around 8% after management warned supply constraints could limit its ability to meet future demand.
Tapestry, the parent company of Coach, raised its annual outlook for the third time in 2026 thanks to strong demand from younger consumers, although shares still fell nearly 9%.
DoorDash gained more than 1% after issuing a stronger-than-expected second-quarter marketplace order value forecast.
Meanwhile, Whirlpool shares plunged nearly 15% after the appliance manufacturer lowered its full-year revenue guidance.
