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US stock indexes hit record highs as Snowflake shares surge and investors react to a potential 60-day ceasefire agreement between the US and Iran.
The S&P 500 and Nasdaq Composite reached record closing highs on Thursday as investors weighed a potential 60-day ceasefire agreement between the U.S. and Iran alongside fresh economic data [1]. The Nasdaq Composite gained 242 points, or 0.9%, to close at 26,917, while the S&P 500 rose 0.6% to 7,563 [1, 2].
Key takeaways
The market’s upward momentum was driven in part by reports of a tentative 60-day ceasefire deal between the U.S. and Iran, which helped ease oil prices [2]. Treasury Secretary Bessent noted that teams have been negotiating the terms, which would involve the reopening of the Strait and the lifting of certain sanctions in exchange for a truce and discussions regarding Iran's nuclear program [3]. However, the agreement remains unfinalized and requires approval from President Donald Trump [1]. Iran’s Tasnim news agency stated that the memorandum of understanding has not yet been confirmed, and sources indicate that disagreements persist regarding the dismantling of Iran's nuclear program [1, 3].
Investors also processed economic reports showing that inflation, as measured by the Fed’s preferred PCE gauge, reached 3.8% in April [3]. This data, combined with a downward revision of first-quarter GDP to 1.6%, highlights a cooling growth environment [1, 3]. Analysts noted that while the market is currently optimistic, the combination of elevated inflation and slowing growth creates a complex backdrop for future Federal Reserve policy decisions [3].
The tech sector continued to lead the market, with the "Magnificent Seven" group of stocks contributing significantly to the day's gains [3]. Snowflake’s performance reignited interest in AI-related stocks, with peers like Datadog and MongoDB also seeing share price increases [1]. Microsoft shares rose 3.5% following reports of a new coding model, and Eli Lilly gained 4% after CVS Health expanded coverage for its weight-loss products [1].
Despite these gains, some analysts expressed concern regarding market concentration. While major tech companies pushed indexes to new records, other sectors such as utilities, energy, and financials lagged, and the transportation sector saw a decline of 142 points [3]. This disparity suggests that the broader market rally is being driven by a limited number of mega-cap stocks rather than widespread participation across all sectors [3].
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SpaceX is debuting on the Nasdaq under the ticker symbol SPCX.
Concerns have emerged due to a combination of rising wholesale prices, as indicated by the Producer Price Index, and signs of weakness in the labor market.
The $75 billion raised by SpaceX is more than double the previous record of $29.4 billion set by Saudi Aramco in 2019.
West Texas Intermediate and Brent crude futures both fell by 3.5% due to optimism regarding a potential deal between the U.S. and Iran.
The current market environment is defined by a tension between resilient corporate earnings and macroeconomic risks, including geopolitical instability and persistent inflation [1]. While investors have largely looked past Middle East tensions, the reliance on a small group of tech giants for index gains poses a risk if that concentration falters [1, 3]. Moving forward, the market will likely remain sensitive to the progress of the U.S.-Iran negotiations and any further signals from the Federal Reserve regarding interest rates, as higher energy costs continue to influence inflation expectations [1, 3].
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 1, 2026 · How we report