United States equities advanced on Thursday (Friday AEST), with the S&P 500 and Nasdaq Composite both reaching fresh record highs, as investors grew increasingly optimistic about a potential resolution to the Iran conflict.
The Dow Jones Industrial Average rose 115.0 points, or 0.2%, to 48,578.7. The S&P 500 added 18.3 points, or 0.3%, to close at 7,041.3, while the Nasdaq Composite climbed 86.7 points, or 0.4%, to 24,102.7.
Both the S&P 500 and Nasdaq touched new intraday and closing records during the session, extending a strong rally seen throughout the week.
Market sentiment was supported after U.S. President Donald Trump confirmed he had spoken with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu. Trump said Israel and Lebanon had agreed to a 10-day ceasefire beginning at 5 pm ET (9 pm GMT), a development viewed as a key step towards broader de-escalation in the region.
Progress on that front is seen as critical to advancing negotiations between the United States and Iran. Iran’s parliamentary speaker indicated that a halt in Israeli military action in Lebanon was a central condition for initiating talks.
Trump added that a new round of in-person discussions with Iran could take place “probably, maybe, next weekend”, reiterating earlier remarks that the conflict is “very close to over” and that Tehran is eager to reach an agreement.
Despite the positive momentum, investors remain cautious about potential volatility. Even if a peace agreement is reached in the near term, uncertainty persists regarding the broader economic impact of the conflict, particularly on energy markets and inflationary pressures.
In corporate developments, PepsiCo shares rose 2.3% after the beverages group reported quarterly profit above analyst expectations, providing support to consumer staples.
Abbott Laboratories fell 6% to its lowest level since November 2023 after the medical device maker cut its full-year profit forecast, weighing on healthcare stocks.
Charles Schwab recorded the steepest decline in the S&P 500, tumbling 7.6% following the release of its latest earnings results, which disappointed investors.
Netflix shares were volatile, ending the regular trading session 0.1% higher before falling 8.8% in after-hours trading. The streaming company maintained its 2026 revenue outlook but announced that co-founder Reed Hastings would step down in June, adding to investor uncertainty.
Among smaller-cap names, Myseum surged 129.2% after rebranding as Myseum.AI, extending a broader trend of speculative interest in artificial intelligence-linked companies.
The rally followed sharp gains in Allbirds a day earlier after the footwear maker announced a strategic pivot towards AI.
Voyager Technologies rose 8.8% after NASA awarded the company a contract to conduct its seventh private astronaut mission to the International Space Station, marking its first selection for such a mission.
In fixed income markets, U.S. Treasury yields moved higher, with the 10-year yield rising 0.8% to 4.315% and the 2-year yield increasing 0.5% to 3.78%.
