S&P 500, Nasdaq hit records after US‑Iran ceasefire

U.S. equity benchmarks reached fresh records on Thursday after the United States and Iran agreed to extend a ceasefire. The S&P 500 rose 0.6% to close at 7,563, while the Nasdaq 100 advanced 0.8% to a new high as technology and AI-related stocks led gains.

The Bureau of Economic Analysis reported that headline personal consumption expenditures inflation climbed to 3.8% year‑over‑year in April, up from 3.5% in March. Core PCE, which excludes food and energy, rose to 3.3% year‑over‑year. That core PCE reading ran notably higher than the core consumer price index at 2.8% year‑over‑year, creating a divergence between the two measures and complicating the outlook for monetary policy under incoming Federal Reserve Chair Kevin Warsh. Treasury Secretary Scott Bessent confirmed negotiators view a permanent wind‑down of the three‑month conflict as attainable if Iran meets conditions such as disposing of certain uranium stocks and reopening the Strait of Hormuz.

Sector performance on Wall Street was led by technology, which gained 1.4%, and healthcare, which rose 1.3%. Defensive sectors underperformed, with consumer staples down 0.6% and utilities falling 1.0%. European markets moved differently, with the FTSE 100 declining 0.7% and Germany’s DAX off 0.3%.

Fixed‑income markets saw modest declines in yields after the ceasefire extension. The U.S. 10‑year Treasury yield fell about three basis points to 4.45% as the yield curve continued to bull‑flatten. The U.S. Dollar Index slipped 0.2%, easing pressure on the yen and pulling USD/JPY away from the 160 intervention level. The New Zealand and Australian dollars led G10 gains, while the South African rand was a top performer in emerging markets.

Brent crude and West Texas Intermediate fell to near six‑week lows, trading around $92.41 and $88.52 per barrel, respectively. Spot gold rose 0.9% to $4,496 per ounce as longer‑term Treasury yields eased.

Corporate developments supported the AI and enterprise software rally. Anthropic closed a $65 billion funding round that raised its private valuation to $965 billion and reported it is tracking toward a $50 billion annualized revenue run rate next month after strong quarter‑to‑quarter sales growth. Snowflake announced a $6 billion deal with Amazon and raised its full‑year sales forecast, sending its shares up as much as 35%. Dell Technologies jumped about 40% in after‑hours trading following a strong quarterly report.

Some market participants flagged capacity concerns in the AI infrastructure buildout. Reports show Microsoft trimming internal licenses for certain models due to cost, and one large customer has exhausted its 2026 AI coding capital allocation, suggesting budget limits among major users.

Asian markets initially traded lower on sticky global yields but recovered on the late U.S. rally. Japan’s Nikkei 225 climbed 1.9% to a record high and South Korea’s KOSPI rose 2.2% to a record. Samsung Electronics’ advanced chip workers secured a long‑term pay package that includes bonuses up to $416,000, a development market watchers say could add wage pressure in the region.

Broader data showed U.S. personal savings fell to 2.6% in April. Market participants will watch Japan consumer confidence, Germany’s preliminary harmonized inflation rate, remarks from Fed officials and further developments in the U.S.‑Iran negotiations for guidance. Market analysts identify near‑term technical support for the Nasdaq 100 around 29,700.