NEW YORK — The S&P 500 closed at a record high on Wednesday as investors bet on a potential resolution to the conflict with Iran amid a fragile ceasefire and ongoing diplomatic efforts, market participants said.
The benchmark index rose about 0.8 percent to finish above 7,000 points for the first time, surpassing its previous peak from late January, according to trading data. The Nasdaq Composite also hit a record, climbing roughly 1.6 percent. The Dow Jones Industrial Average was little changed.
The gains extended a two-week rally that has erased losses the market incurred after the escalation of the conflict in late February. Investors appeared to draw confidence from President Donald Trump's comments expressing optimism that the situation was nearing an end, as well as continued Pakistani mediation between the U.S. and Iran.
A two-week ceasefire, brokered with Pakistani assistance and effective from April 8, has held with no reported major violations. High-level talks in Islamabad over the weekend of April 11-12 ended without agreement after more than 20 hours of negotiations, but Pakistan has pressed ahead with efforts to arrange further discussions.
Trump said in a prerecorded interview aired on Wednesday that he viewed the conflict as “very close to being over” and that Iran “wants to make a deal very badly.” White House officials have signaled openness to additional talks, though details of any potential extension of the ceasefire remain unclear.
“Iran wants to make a deal very badly,” Trump said.
Oil prices have remained volatile during the truce period amid a U.S. naval blockade of Iranian ports and concerns over navigation in the Strait of Hormuz. However, some regional officials indicated an “in principle agreement” to extend the ceasefire to allow more diplomacy, according to reports.
Major bank earnings helped support sentiment as the corporate reporting season began, with analysts expecting overall growth across S&P 500 companies.
The conflict escalated following U.S. and Israeli strikes on Iranian targets that began on Feb. 28. The ceasefire halted direct hostilities, though broader regional issues have persisted.
As of Thursday, no new round of direct talks had been formally scheduled. Pakistani officials have described their role as a neutral facilitator in the process. Discussions on the ceasefire's status beyond its current term were continuing through indirect channels.
