S&P 500 and Nasdaq Close at Fresh Records as Markets Look Past Iran War Fears
The S&P 500 and the Nasdaq Composite closed at new all-time highs on Wednesday, extending the week’s rally as investors stayed hopeful the Iran war could be nearing an end.
The broad S&P 500 rose 0.8%. The Nasdaq Composite advanced 1.59%, while the Dow Jones Industrial Average slipped 72 points, or 0.15%. The move put the S&P 500 on track for its 10th positive session in 11 and extended the tech-heavy Nasdaq’s winning streak to 11 sessions.
Stocks have pushed higher this week on optimism that a U.S.–Iran peace deal could materialize. The S&P 500, which had already fully recovered its Iran-war-related losses on Monday, is up about 3% for the week. The Nasdaq and the Dow have added more than 4% and 1%, respectively, week to date.
“The setup coming into [the war] was that market participants had de-risked to a degree in anticipation that maybe things might get bad, and then as that seems like it’s maybe less of a likelihood, they’re needing to buy,” said Thomas Martin, senior portfolio manager at Globalt Investments. “People don’t want to miss out on an up market.”
President Donald Trump added to the constructive tone, telling Fox Business on Wednesday that the Iran war is “very close to over” and reiterating that Iran wants to “make a deal very badly.”
For markets, the key transmission channel has been a compression in geopolitical risk premia that has lifted risk appetite—most visibly in mega-cap technology—while investors continue to monitor any concrete signals on U.S.–Iran negotiations that could validate the rally.
Source : Newsmaker.id
