S&P 500, Nasdaq Climb To Record Highs, Boosted By Tech Gains As Markets Move Past War Concerns

• The tech-heavy Nasdaq Composite closed up 1.59% at 24,016.02, extending an 11-day winning streak. 
• Most of the ‘Magnificent Seven’ stocks closed up higher on Wednesday, with Tesla ending the session 7.6% higher and Microsoft up 4.61% at close. 
• Investors are also growing optimistic over an eventual peace deal between the U.S. and Iran.

U.S. stock markets ended Wednesday’s trading session higher, with the benchmark S&P 500 and the tech-heavy Nasdaq Composite rising to all-time highs as technology stocks rallied and investors turned optimistic over the end of the Iran war.

The S&P 500 closed 0.8% higher, ending the session at 7,022.95, surging past a prior pre-war January high. The index also ​hit a new intraday record of 7,026.24.

Meanwhile, the Nasdaq Composite closed up 1.59% at 24,016.02, and also notched an intraday high of 24,026.56, extending an 11-day winning streak.

Tech Stocks Rally

The stock market was bolstered by impressive upticks in technology stocks, including software stocks that reversed steep declines from last week.

Most of the ‘Magnificent Seven’ stocks closed up higher on Wednesday. Shares of Tesla Inc. (TSLA) closed up 7.6% amid growing anticipation for its earnings results, while Microsoft Corp. (MSFT) was 4.61% higher at close, while Nvidia Corp. (NVDA) was up 1.2% at session end.

The Roundhill Magnificent Seven ETF (MAGS), which tracks the seven mega-cap tech giants, ended Wednesday’s session up by 2.59%. Overall, tech stocks have had a solid run in the past year.

Meanwhile, software stocks, including Salesforce Inc. (CRM), Adobe Inc. (ADBE), ServiceNow Inc. (NOW), Snowflake Inc. (SNOW), and Intuit Inc. (INTU) were up between 3.67% and 7.29% at close.

Financial stocks, like Bank of America Corp. (BAC) and Morgan Stanley (MS), also closed higher amid strong earnings.

End Of War Optimism

Investors are also growing optimistic over an eventual peace deal between the U.S. and Iran that will enable the reopening of the Strait of Hormuz and eventually ease oil prices.

Reports also indicate that the U.S. and Iran are inching closer to extending the two-week ceasefire, with some saying that the two countries are likely to return to Pakistan for another round of peace negotiations as soon as next week.

Expert Take

The Future Fund Managing Partner Gary Black, who has maintained that U.S. equities would soar after the Iran war ends and oil prices stabilize, said in a post on X on Wednesday that the market could climb even further.

“Stocks remain compelling relative to risk-free bonds, and absent the war, could move even higher if the impending earnings season produces further gains in EPS estimates,” Black said.

Meanwhile, at the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, declined about 0.05% in extended trading hours, while the Invesco QQQ Trust ETF (QQQ) fell 0.05%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) was up 0.11%.

Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘neutral’ territory.

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Also Read: Fed Beige Book: Iran War Pushes American Companies Into ‘Wait-And-See’ Mode