The S&P 500 and Nasdaq Composite indices closed at record highs as the United States and Iran agreed to extend their ceasefire, providing a boost to market sentiment.
The S&P 500 gained 43.50 points, or 0.58%, to end at 7,563.71 points, while the Nasdaq Composite rose 239.79 points, or 0.91%, to 26,917.47. The Dow Jones Industrial Average also saw a modest increase of 24.11 points, or 0.04%, to 50,666.29.
The healthcare sector led the gains, with Eli Lilly advancing after CVS Health announced the reinstatement of its weight-loss injection, Zepbound, and the addition of its new obesity pill, Foundayo.
“Markets continue to look through these risks because the global economy and corporate earnings remain relatively resilient.”
Jitania Kandhari, Deputy CIO, Morgan Stanley Investment Management
Tech shares also performed well, with Microsoft gaining on reports of a new coding model release and Marvell Technology rising after UBS raised its target price.
Snowflake shares soared following a revised annual product revenue forecast and a significant AI infrastructure deal with Amazon Web Services.
Background
Renewed confidence in AI and earnings growth momentum have driven the recent rally despite ongoing Middle East tensions, which have heightened inflationary expectations.
Looking ahead, market participants will closely monitor geopolitical developments and their potential impact on inflation and corporate earnings.
