Stocks Hit Records as Peace Hopes, Earnings Boost Sentiment – US Market Wrap

Stocks rose, yields climbed, oil edged higher, and the dollar slipped as optimism around a Middle East peace deal and strong earnings lifted sentiment.

US stocks closed at record highs, with the S&P 500 up 0.8%, extending a sharp two-week rally from late March lows. The Nasdaq 100 gained 1.4%, also hitting a record, led by Bank of America and Morgan Stanley as equity trading revenues beat expectations.

Hopes for progress in US-Iran peace efforts have driven investors to price out geopolitical risk premiums and refocus on AI and corporate resilience. A potential two-week ceasefire extension is being considered to allow more time for negotiations, easing fears of renewed conflict despite tensions around the Strait of Hormuz.

Brent rose 0.1% toward $95 as the US maintained a naval blockade of Hormuz. Treasuries fell, with the 2-year yield rising to 3.76%. The dollar weakened and gold slipped toward $4,800.