Wall Street Climbs Again As Ceasefire Hopes And AI Rally Push Stocks To Fresh Records
Synopsis
The S&P 500 and Nasdaq ended at record highs as investors welcomed signs of progress in US-Iran ceasefire talks and continued betting on AI-driven growth.
The S&P 500 and Nasdaq Composite closed at record highs on Thursday after reports suggested the United States and Iran had reached a draft agreement to extend their ceasefire for another 60 days. The Dow Jones Industrial Average also edged higher to finish at another closing high.
Key highlights
- S&P 500 and Nasdaq closed at fresh record highs
- Markets rallied on reports of a US-Iran ceasefire extension
- Dow Jones also finished at a new closing high
- Tech and AI-linked stocks led gains again
- Investors weighed hotter US inflation data and weaker GDP growth
Ceasefire Boost
Reuters reported that Washington and Tehran had agreed on a draft framework to extend the ceasefire, although Donald Trump had not yet approved the proposal.
Iranian outlet Tasnim News Agency said discussions were still ongoing and no final agreement had been confirmed.
The easing geopolitical tensions helped improve investor sentiment after weeks of volatility tied to the Middle East conflict.
Inflation Still Rising
Markets also absorbed fresh economic data showing US inflation accelerated at its fastest pace in three years during April, driven largely by higher energy prices.
At the same time, first-quarter US GDP growth was revised lower to an annualised 1.6%, signalling slower economic momentum.
Despite inflation concerns, investors continued rotating into technology and growth stocks tied to artificial intelligence.
AI Trade Roars Ahead
Microsoft rose 3.5% after reports it could unveil a new AI coding model next week.
Marvell Technology gained 3% after UBS raised its price target on the stock.
Meanwhile, Snowflake jumped 36% after lifting its annual revenue outlook and announcing a $6 billion AI infrastructure agreement with Amazon Web Services.
Other AI-linked software companies including Datadog and MongoDB also moved sharply higher.
Healthcare And Retail Winners
Healthcare shares also supported the broader market rally.
Eli Lilly rose 4% after CVS Health said it would restore coverage for its obesity drug Zepbound.
Retailers rallied as Dollar Tree surged nearly 18% after lifting its profit forecast, while Best Buy jumped 15.8% following stronger-than-expected sales guidance.
Market Snapshot
The S&P 500 gained 0.58% to close at 7,563.63, while the Nasdaq rose 0.91% to 26,917.47.
The Dow Jones Industrial Average added 24.69 points to finish at 50,668.97.
FAQs
Q1: Why did Wall Street hit record highs?
Markets rallied on reports of a possible US-Iran ceasefire extension and continued optimism around AI-driven growth.
Q2: Which sectors led the gains?
Technology, AI-linked software and healthcare stocks were among the strongest performers.
Q3: What economic data impacted markets?
US inflation rose at its fastest pace in three years, while GDP growth was revised lower.
Q4: Why did Snowflake shares surge?
The company raised its revenue forecast and announced a $6 billion AI infrastructure deal with Amazon Web Services.
Q5: Has the US-Iran ceasefire been finalised?
No. Reports said the draft agreement still requires approval from both sides.
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I write about markets, money, and the macro forces that move them. Passionate about turning complex economic trends into sharp, easy-to-understand stories. Off the clock, it’s hip hop, rock, reggae -- and a mix of cricket and basketball.
