S&P 500 and Nasdaq Extend Record Rally

The S&P 500 reached another all-time intraday high on Thursday as investors responded positively to continued declines in oil prices and growing optimism surrounding a possible diplomatic resolution between the United States and Iran.
The broad market index gained 0.2%, while the Nasdaq Composite advanced 0.6%, setting another record high driven by strength in technology shares.
Meanwhile, the Dow Jones Industrial Average traded near flat levels after surging more than 600 points during the previous session.
The latest market gains extend a powerful rally that has pushed major US indexes to historic highs amid easing geopolitical fears and strong corporate earnings.

Oil Prices Continue Sharp Pullback

Oil markets remained under pressure for a second consecutive day as traders increasingly priced in the possibility of a de-escalation in the Middle East conflict.
US West Texas Intermediate crude futures fell roughly 3% to trade near $91 per barrel, while Brent crude declined another 3% to around $97 per barrel.
The selloff reflects improving expectations that global energy flows through the Strait of Hormuz may normalize if negotiations between Washington and Tehran advance.
Lower oil prices have helped ease concerns surrounding inflation, consumer costs, and prolonged restrictive monetary policy from central banks.

Diplomatic Hopes Boost Investor Sentiment

Investor optimism strengthened after reports indicated the United States and Iran are moving closer toward a potential agreement to end the conflict.
According to reports, discussions involve a proposed 14-point memorandum of understanding designed to end military hostilities while establishing a framework for future nuclear negotiations.
An Iranian foreign ministry spokesperson also confirmed that Tehran is evaluating a proposal from Washington.
The possibility of a diplomatic breakthrough has significantly improved risk appetite across global financial markets.

Corporate Earnings Add Fuel to Rally

Beyond geopolitics, strong earnings results continue supporting equity markets.
Fortinet surged 22% after raising its full-year billings guidance, reflecting continued strength in cybersecurity spending.
Meanwhile, DoorDash gained more than 1% after issuing optimistic second-quarter order guidance.
The broader earnings season has remained stronger than expected, particularly within technology, software, semiconductor, and AI-related sectors.

AI and Technology Momentum Remains Dominant

Technology shares continue driving overall market performance as investors maintain confidence in long-term artificial intelligence infrastructure demand.
Strong earnings from semiconductor, cybersecurity, and cloud-related companies have reinforced the market’s view that AI spending remains in an aggressive expansion phase despite earlier concerns surrounding elevated capital expenditures.
Analysts noted that earnings growth has largely justified the market’s continued upward momentum.

Markets Increasingly Price in Soft Landing Scenario

Investors appear increasingly confident that easing geopolitical tensions, declining oil prices, and resilient corporate earnings could support a more favorable macroeconomic environment.
Lower energy costs may reduce inflationary pressure and improve conditions for consumers and businesses globally.
At the same time, stable earnings growth continues reinforcing expectations that the US economy may avoid a deeper slowdown despite higher interest rates earlier in the year.

Outlook

Markets remain highly sensitive to developments surrounding US-Iran negotiations, energy prices, and the broader earnings season.
If diplomatic progress continues and oil prices remain under control, investor focus is likely to shift increasingly toward corporate earnings, AI investment trends, and future Federal Reserve policy expectations.