S&P 500, Nasdaq Close at Records on Tech Rally, Iran Hopes

The S&P 500 and Nasdaq Composite closed at record levels on Thursday, bolstered by a resurgence in technology stocks and reports of a potential diplomatic agreement between the U.S. and Iran [1]. The broader market gained ground as traders weighed positive earnings updates against new inflation data, pushing both indexes to intraday all-time highs before the closing bell [1].

Key takeaways

• The S&P 500 rose 0.58% to 7,563.63, while the Nasdaq Composite jumped 0.91% to 26,917.47, both setting record closing highs [1].
• Tech stocks led the rally, with Snowflake soaring 36.5% following a strong earnings outlook and a $6 billion spending plan with Amazon Web Services [1].
• Markets reacted to a report claiming U.S. and Iranian negotiators agreed to a 60-day ceasefire extension, though final approval from President Donald Trump is pending [1].
• The personal consumption expenditures price index rose 0.4% in April, a softer reading than the 0.5% economists expected, while the annual rate held at 3.8% [1].

Tech sector drives market records

Technology stocks spearheaded the market's upward trajectory, with cloud-based data platform provider Snowflake posting its best day ever. Shares surged 36.5% after the company issued optimistic fiscal second-quarter guidance and reported beating expectations on both revenue and earnings for the latest quarter [1]. The company also announced a plan to invest $6 billion in Amazon Web Services over the next five years [1]. This momentum lifted other enterprise software and chip stocks; the iShares Expanded Tech-Software Sector ETF (IGV) rallied 2.8%, while memory stocks like Sandisk rose 3.3% [1]. Chip giants also saw significant gains, with Qualcomm and Advanced Micro Devices jumping 4.2% and 4.6%, respectively [1].

Geopolitical news and economic data

Investor sentiment was further supported by geopolitical developments, following a report from Axios citing U.S. officials and a regional source [1]. The report stated that U.S. and Iranian negotiators had agreed on a 60-day memorandum of understanding to extend a ceasefire, with further negotiations planned regarding Iran's nuclear program [1]. However, the report noted that President Donald Trump has not yet given the agreement his final approval [1]. Oil prices reacted to the news, with West Texas Intermediate crude futures settling up 0.3% at $88.90 a barrel and Brent futures ticking down 0.6% to $93.71 a barrel [1]. Earlier in the session, prices had been higher following reports of military strikes in the region [1]. Additionally, the latest inflation reading provided some relief, as the Commerce Department reported a 0.4% seasonally adjusted increase in the personal consumption expenditures price index for April, softer than the 0.5% forecast by economists [1].