U.S. stocks soar to record highs on peace hopes amid a potential Iran war resolution
Both indices recorded intraday and closing all-time highs, while the Dow Jones Industrial Average added 115 points, or 0.24%, ending at 48,578.72.
Record highs
S&P 500 and Nasdaq have gained 3.3% and 5.2% this week, respectively, with the Dow rising over 1%.
Stocks received an uplift after President Donald Trump confirmed talks with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu, highlighting a 10-day ceasefire agreement.
The ceasefire is crucial for resuming U.S.-Iran negotiations, according to the speaker of Iran’s parliament.
Trump believes the next round of talks may be scheduled for “probably, maybe, next weekend”.
He has previously promised that the Iran war is “very close to over,” indicating Tehran’s eagerness for a deal.
Recent stock gains reflect hopes for a peace agreement between the U.S. and Iran, with the S&P 500 recovering all losses from the war’s start.
Both indices set significant milestones, with the S&P closing above 7,000 and the Nasdaq surpassing 24,000 for the first time.
Despite potential peace, market volatility may persist due to the war’s impact on the U.S. economy.
Rob Williams, chief investment strategist at Sage Advisory, warned of possible subpar GDP growth.
He says that while resolution with Iran would be positive, the economy is likely to remain around 2% growth, however concerns exist about market readiness for potential economic fluctuations.
