S&P Tops 7,000; Nasdaq Nears Record on Iran Talks

On Wednesday the S&P 500 climbed above 7,000 and the Nasdaq moved toward its October record as gains in mega-cap technology stocks lifted U.S. equities ahead of a second round of U.S.-Iran talks set for Thursday.

Stocks opened near unchanged and accelerated as large-cap tech names led. Microsoft rose about 5.8% and Tesla jumped roughly 7.4%, boosting the technology services sector while manufacturing, utilities and health care lagged. The Nasdaq has rallied close to 15% year to date and was within a few dozen points of its October all-time high; the S&P 500 cleared its January record and traded above 7,000 for the first time since January.

A second round of U.S.-Iran negotiations is scheduled for Thursday. Prediction-market odds for a peace deal by April 30 were about 37% on Wednesday. U.S. crude futures held just above $90 a barrel.

The Federal Reserve’s Beige Book, released Wednesday, reported modest growth in eight of 12 districts and noted pockets of internal weakness.

Market internals were uneven. The Dow Jones Industrial Average lagged its peers and failed to surpass its previous session highs, reflecting a rally concentrated in a subset of large technology companies. Analysts flagged the possibility of profit taking if the talks falter.

The Strait of Hormuz remained effectively blocked, and U.S. crude orders were projected to reach record highs next month, factors that kept energy markets attentive to developments in the Gulf.

Investors monitored the talks for signs of “buy the rumor, sell the news” behavior and for any indication the diplomatic process would not produce a ceasefire or deal quickly.