S&P 500, Nasdaq And Dow Close At Record Highs Amid Positive Reports Of US-Iran Ceasefire Negotiations — IBM, SNOW, CZR, AKTX, LLY In Focus

• The S&P 500 rose 0.6%, and the Dow Jones gained 0.1%, while the Nasdaq 100 added 0.6%.
• Oil prices and Treasury yields eased as investors hoped for a longer-lasting ceasefire agreement. 
• Consumer spending, adjusted for inflation, increased 0.1% in April after rising 1.6% in March.

U.S. benchmark stock indices ended at record highs on Thursday as signs of easing U.S.-Iran tensions aided sentiment. 

The S&P 500 ended 0.6% higher, the Nasdaq 100 rose 0.8%, and the Dow Jones inched 0.1% higher, all hitting record highs, as per data from Koyfin. The Russell 2000, which tracks stocks with small market capitalization, gained for the sixth session and hit record highs on Thursday. 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) ended Thursday around 0.6 and 1% higher respectively. The SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.1%. 

The VanEck Semiconductor ETF (SMH) rose 1%. 

Meanwhile, retail sentiment on Stocktwits for SPY, QQQ and DIA was all in the “extremely bullish” territory with “extremely high” message volumes.  

US Market Drivers

U.S. equities hit new highs following a report from Axios, citing a regional source and two U.S. officials, stating that Iranian and U.S. negotiators have reached a 60-day memorandum of understanding. This agreement aims to prolong the ceasefire and facilitate additional discussions regarding Iran’s nuclear capabilities. The report noted, however, that the deal is still awaiting final authorization from President Donald Trump.

“The market has been expecting some type of MOU — memorandum of understanding — here,” said David Wagner, head of equities at Aptus Capital Advisors told CNBC in an interview. “You’re going to see the discretionary names run as a first knee-jerk reaction to a lot of this news, which can drive the market higher.” 

However, Treasury Secretary Scott Bessent said on Thursday that no Iranian sanctions would be lifted unless the country gives up its enriched uranium stockpile. 

Oil prices pulled back from their highs following the report. The West Texas Intermediate crude oil futures was last trading at around $89 a barrel, while Brent futures traded around $94 a barrel, as per data from CNBC. 

Moreover, the Personal Consumption Expenditures (PCE) Index, which is the Federal Reserve’s preferred gauge of inflation, advanced 3.8% in April on an annualized basis.

The Commerce Department data showed that core PCE, which excludes food and energy, rose 3.3% on an annualized basis in April, up 0.2% on a monthly basis.

Trending Stocks To Watch 

International Business Machines (IBM): The firm unveiled an aggressive plan to spend more than $10 billion over the next five years on quantum computing, aiming to bring a commercial, large-scale system to market by 2029.

Snowflake (SNOW):  Blockbuster first-quarter results and a massive $6 billion partnership with Amazon Web Services fueled bullish calls for as much as 85% upside ahead.  

Eli Lilly (LLY): Shares hit record highs after CVS Health (CVS) said it will restore coverage of Lilly’s weight-loss injection Zepbound and begin covering its newly approved obesity pill, Foundayo. 

Akari Therapeutics (AKTX): CEO Abizer Gaslightwala highlighted the potential of the company’s proprietary antibody drug conjugate platform to treat cancer, ahead of a key oncology conference. 

Caesars Entertainment (CZX): Entered into a definitive agreement to be acquired by Fertitta Entertainment Inc. in an all-cash deal valued at about $17.6 billion. 

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