NEW YORK — The S&P 500 closed at a record high on Thursday as investors weighed ongoing concerns over the U.S.-Iran conflict against expectations of a possible de-escalation and strong corporate earnings, market participants said.
The benchmark index rose about 0.8% to settle at 7,022.95, surpassing its previous closing high from January, according to LSEG data and exchange records. It also hit an intraday record of 7,026.24. The Nasdaq Composite and other major indexes posted gains as well.
The advance came despite tensions in the Middle East, where a U.S.-backed ceasefire involving Israel and Lebanon took effect on Friday and separate talks on Iran continued. Oil prices have fluctuated amid the conflict, which began in late February, but investors appeared to focus on signs of potential resolution and resilient U.S. corporate results.
Market strategists attributed the rally in part to hopes that the conflict would not lead to prolonged disruption in global energy supplies or broader economic damage. President Donald Trump has signaled confidence in reaching a deal to end hostilities, officials said.
The S&P 500 had earlier dropped nearly 10% from its January peak following the escalation of the conflict, falling to a low in late March before recovering, according to trading data. The index has now erased those losses and stands above pre-conflict levels.
Analysts at major banks have maintained positive outlooks for equities in 2026, with many forecasting further gains even amid geopolitical risks. Earnings expectations for major companies remained robust heading into the current reporting season.
One trader on the floor of the New York Stock Exchange noted the market’s focus on fundamentals over headlines. “Investors are pricing in a scenario where the conflict winds down without major long-term impact,” the trader said, speaking on condition of anonymity.
Broader market breadth improved, with more stocks advancing than declining. The Dow Jones Industrial Average showed more modest movement.
As of Friday morning in New York, futures pointed to a slightly higher open. No major economic data releases were scheduled for the day that would immediately shift sentiment.
The record close marks the latest in a series of highs for U.S. equities this year, even as uncertainty persists in the Middle East. Trading volumes and volatility levels were not immediately detailed in early reports.
