U.S. stocks moved higher, with the S&P 500 and Nasdaq Composite closing firmly in the green as optimism grew around a possible de-escalation in the Middle East and renewed talks with Iran. Softer-than-expected U.S. producer inflation data, along with a strong start to the earnings season, helped lift overall risk appetite. Gains were led by technology, software, and semiconductor stocks, pushing major indexes closer to record highs.
Wall Street’s key benchmarks edged toward their all-time closing levels as investors weighed improving geopolitical prospects alongside fresh bank earnings and inflation updates. U.S. President Donald Trump indicated that discussions aimed at ending the Iran conflict could resume in Pakistan within days, following the breakdown of weekend negotiations that led Washington to impose a blockade on Iranian ports.
At the same time, diplomatic efforts continued as Israeli and Lebanese representatives entered talks led by Marco Rubio, although with differing objectives—Israel pushing for the disarmament of Iran-backed Hezbollah.
Markets have remained highly sensitive to developments in the region, particularly due to the impact of volatile oil prices on inflation expectations. Negative headlines have pressured equities, while even tentative signs of easing tensions have encouraged investors seeking clarity and stability.
On the macro front, inflation data offered further support. U.S. producer prices rose less than expected in March, with service costs remaining flat. This, combined with a solid start to corporate earnings, added to the positive sentiment, according to market strategists.
By the close, the S&P 500 climbed 80.54 points (+1.17%) to 6,966.78, just shy of its record close of 6,978.60 set in late January. The Nasdaq Composite surged 452.18 points (+1.95%) to 23,635.92, while the Dow Jones Industrial Average gained 317.14 points (+0.66%) to finish at 48,535.39.
Sector-wise, software stocks extended their rally for a second straight session, and the Philadelphia Semiconductor Index reached a fresh record high for the fifth consecutive day.
In corporate news, BlackRock shares advanced after reporting higher first-quarter profit driven by strong ETF inflows and increased performance fees. Citigroup surged to its highest level in nearly 20 years after beating earnings expectations, while Johnson & Johnson also moved higher following its results.
On the downside, JPMorgan Chase saw a muted reaction to its earnings, and Wells Fargo declined after reporting weaker-than-expected interest income.
