US stock indices have hit new all-time highs, buoyed by investor optimism surrounding a potential de-escalation in the US-Iran conflict and expectations of a more dovish Federal Reserve. The S&P 500 climbed 0.8% to close above 7,000 for the first time, while the Nasdaq 100 set a record by surpassing 24,400 points, driven largely by gains in major tech stocks following strong earnings from Taiwanese chipmaker TSMC.
This rally reflects a broader market sentiment shift, with lower oil prices enhancing risk appetite for equities. The recent earnings reports from major banks, including Bank of America and Morgan Stanley, have also exceeded expectations, contributing to the positive momentum. Historically, such rapid gains in the S&P 500—up approximately 10% in just 11 days—signal mixed future trends, though they often lead to moderate short-term returns and potentially higher long-term gains.
As the market awaits Netflix’s Q1 2026 earnings report, which could further influence investor sentiment, the strong performance of US public companies remains a critical support for equities moving forward.
Source: xtb.com