S&P 500, Nasdaq Hit Records on Ceasefire Optimism

The S&P 500 rose 0.8% to 7,022.95 points, an all-time high, while the Nasdaq Composite surged 1.59% to 24,016.02 points, also a record. This recovery saw the S&P 500 gain over 10% in 11 trading sessions and the Nasdaq soar more than 15% since late March, officially exiting a correction.

Investors are driven by optimism surrounding a fragile US-Iran ceasefire, a pullback in oil prices, and strong corporate profit forecasts during earnings season. Despite the rally, analysts like Craig Johnson of Piper Sandler advise "healthy skepticism," noting the rally "appears to be built on hope" given oil prices remain above $90 per barrel and geopolitical uncertainty persists, including President Donald Trump's announced blockade of the Strait of Hormuz.

The Dow Jones Industrial Average lagged, falling 0.15% on Wednesday, though it is up roughly 5% this month.