Stocks climbed to fresh records Thursday after reports of a deal between the US and Iran fanned optimism that the conflict is inching toward an end.
The S&P 500 Index closed 0.6% higher, extending its winning streak for a sixth-straight session, as healthcare and tech stocks led gains. The tech-heavy Nasdaq 100 Index ended the day up 0.8% and the Dow Jones Industrial Average rose less than 0.1%. All three gauges ended the day at record highs.
Equities started the day in the red but jumped to gains after Axios said the US and Iran have reached a deal to extend a truce and work toward an agreement to end the war. US President Donald Trump still needs to approve the terms, it said. Oil prices pared gains on the news and bond yields dipped.
ALSO READ: Trade Setup For May 29: Nifty To Find Immediate Resistance At 24,000 Level Amid Oil Price Slide
"Stocks wobbled a bit earlier this morning, but the major indices have since caught a bid thanks to solid earnings," as well as cooler inflation and news of a possible Iran deal, Vital Knowledge founder Adam Crisafulli said.
Investors have embraced signs of progress in US-Iran negotiations while continuing to pile into beneficiaries of the artificial intelligence buildout. The S&P 500 is heading toward its ninth straight week of gains, a streak that has only been matched four times since 1985.
The roughly 11% year-to-date climb in the benchmark has rewarded investors that held steady in the face of war-fueled turmoil while also raising concerns over valuations and its heavy concentration in Big Tech.
"Equities are priced for perfection in a world that's not that perfect," Emily Roland, co-chief investment strategist at Manulife John Hancock Investments, said in an interview on Bloomberg TV. Locking in higher bond yields looks attractive given current stock prices, she added.
Data on Thursday showed inflation-adjusted consumer spending climbed 0.1% in April, in line with expectations. PCE inflation data was cooler than expected for the month.
At the same time, weekly jobless claims rose by 5,000 last week, coming in above expectations. The US economy also grew at a slower-than-expected pace in the first quarter, with GDP expanding at 1.6%, short of economist forecasts for 2% growth and down from 2% in the prior quarter.
"In conjunction with healthy economic data so far into Q2, the readings point to a resilient economy withstanding a prolonged war and inflationary pressures," said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.
ALSO READ: Even Non-Chinese Trade Depends on China | The Reason Why
Multiple Federal Reserve speakers raised inflation concerns in comments overnight, including Chicago Fed President Austan Goolsbee, who said that productivity spending may fuel rising prices. Minnesota Fed President Neel Kashkari called inflation his top priority.
Among single-stock movers, software maker Snowflake Inc. shares soared after providing a better-than-expected sales outlook and inked a $6 billion agreement to use Amazon.com Inc.'s cloud services and chips.
Dollar Tree shares jumped after the discount retailer's per-share guidance for the full year came in ahead of Wall Street estimates.
Sectors in Focus
- Watch shares in interest-rate sensitive sectors including financials on Friday with six different Federal Reserve officials due to give speeches.
- Consumer stocks may be in focus with retail and wholseale inventories data due out at 8:30 a.m. in New York.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
