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US STOCKS HIT RECORD HIGHS ON IRAN CEASEFIRE OPTIMISM

The S&P 500 .SPX and Nasdaq .IXIC hit record highs on Thursday on signs that the U.S.-Israeli war with Iran may be closer to reaching a resolution.

The United States and Iran reached an agreement on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, sources told Reuters, though U.S. President Donald Trump has yet to approve it and Iranian state media said it had not been finalized.

The news comes as investors remain cautious about whether elevated oil prices will feed through to higher core consumer inflation — and, in turn, prompt the Federal Reserve to raise interest rates.

Data on Thursday showed that core U.S. inflation increased at its fastest pace since November 2023 on an annual basis, though it slowed on a monthly basis.

In any event, the SPX posted its 21st record close of 2026, while the Nasdaq scored its 17th. The Dow .DJI, as well, ended at a record close for the 11th time this year. The small-cap Russell 2000 .RUT posted its 18th record close of 2026.

Two S&P 500 sectors — tech .SPLRCT and consumer discretionary .SPLRCD — also notched record closing highs.

Strong corporate earnings and an improving economic growth outlook have encouraged risk-taking, with record spending on artificial intelligence providing an additional boost to the economy.

Benchmark 10-year Treasury yields US10YT=RR have also pulled back, falling to 4.45% from a 16-month high of 4.687% a week ago — a move analysts say has helped ease what they describe as a tightening effect on the economy.

Here is Thursday’s closing market snapshot:

(Karen Brettell, Terence Gabriel)

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