S&P 500 tops 7,000 as US‑Iran talks set to resume

On April 15 the S&P 500 rose past 7,000 for the first time since January, extending a roughly 15% advance from recent levels as investors bought large-cap technology stocks and short positions were squeezed.

Microsoft gained about 4.6% and Tesla rose about 7.8%, leaving the Nasdaq within a few points of its October record. Gains were concentrated in mega-cap tech and services stocks, while defensive sectors lagged.

Cryptocurrencies and other risk assets recorded gains during the session, while metals and traditional safe-haven assets underperformed. Oil traded above $90 a barrel and the Strait of Hormuz remained a focus after US naval operations in the area.

US-Iran diplomatic talks are scheduled to resume in Pakistan tomorrow. Prediction markets assign roughly a 37% probability of a peace deal by April 30.

Investor Scott Bessent told attendees he did not expect private credit stress to become ‘a systemic event.' Some traders recalled former Federal Reserve Chair Ben Bernanke's 2007 remark that ‘subprime is contained.'

Companies reporting earnings on April 16 include Taiwan Semiconductor Manufacturing Co., Bank of New York Mellon, Netflix and PepsiCo. Major mega-cap quarterly reports are scheduled for next week.

Market events to watch over the next 24 hours include a speech by Federal Reserve Governor John Williams at 8:35 a.m. ET, Australian employment data, Chinese and UK GDP updates and European consumer price inflation releases.

The Australian dollar outperformed peers after a ceasefire development lifted risk-linked currencies; traders noted the AUD will be sensitive to the outcome of the Pakistan talks.

Traders will monitor the diplomatic meetings and the incoming economic calendar over the coming days.