Stocks Surge: S&P 500 and Nasdaq Reach Record Highs

U.S. equity markets closed sharply higher as investors cheered corporate results and signs of easing geopolitical tensions. The S&P 500 and Nasdaq rose to fresh closing peaks, driven by tech strength and upbeat bank earnings.

Indexes and session statistics

The S&P 500 gained 55.57 points, or 0.80%, to finish at 7,022.95. The Nasdaq Composite climbed 376.93 points, or 1.60%, to 24,016.02.

The Dow Jones Industrial Average slipped 72.27 points, or 0.15%, to 48,463.72. The Nasdaq posted an 11-session winning streak, its longest since November 2021.

Market drivers

Profit reports from major banks bolstered investor sentiment. Bank of America rose 1.8% after reporting higher first-quarter profit.

Morgan Stanley jumped 4.5% on a sizeable quarterly profit increase. The S&P 500 financial index closed up about 0.8%.

Technology and software leadership

Information technology led sector gains with a roughly 2.08% rise. The S&P 500 software and services group surged about 4.3%.

Individual tech winners included Broadcom, which advanced about 4.2% after Meta extended a custom chips deal.

Smaller cap movers and AI plays

Quantum computing names rallied strongly. D-Wave jumped roughly 22.6%, Rigetti rose over 13%, and Arqit climbed above 16%.

Snap gained about 7.9% after announcing roughly 1,000 layoffs. Allbirds spiked after pivoting toward AI infrastructure.

Geopolitical context and policy actions

Investor hopes centered on potential U.S.-Iran negotiations to curb the conflict. Hopes for progress helped calm energy and inflation fears.

The White House said talks about a second round with Iran were ongoing and productive. Officials denied reports that the United States had requested a ceasefire.

The Treasury announced sanctions targeting Iran’s oil transport network. More than two dozen people, firms and vessels were named.

Market breadth and risk indicators

Advancing issues outnumbered decliners on the NYSE by about 1.2-to-1. There were 271 new highs and 46 new lows on that exchange.

On the Nasdaq, 2,857 stocks advanced while 1,945 declined. The Nasdaq recorded 104 new highs and 43 new lows.

Trading volume on U.S. exchanges reached 18.66 billion shares, slightly below the 20-session average of 19.18 billion. The CBOE Volatility Index edged lower.

Analyst perspectives and outlook

Advisers said the rebound reflected both earnings optimism and easing geopolitical risk. ClearBridge’s market team pointed to a solid start to earnings season.

Some strategists cautioned that sustained gains may require concrete progress on a diplomatic settlement. Rising oil prices remain a lingering risk.

Portfolio managers noted that the recent pullback presented buying opportunities. They argued fundamentals still support the market’s advance.

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