Wall Street sets another record after US stocks tick higher

U.S. stocks reached another record high Thursday as investors cautiously monitor developments in the Iran-Israel conflict while awaiting clear signals on the market’s next direction.

The S&P 500 rose 0.3% to 7,041.28, marking its 11th gain in 12 days and surpassing the previous all-time high set in January. The Dow Jones Industrial Average added 115 points, or 0.2%, to close at 48,578.72, while the Nasdaq composite increased 0.4% to 24,102.70.

Since late March, U.S. equities have surged more than 10%, fueled by optimism about a potential resolution to the Middle East conflict that could avert severe economic consequences. However, markets remain in a holding pattern as investors assess whether such hopes are justified.

Diplomatic efforts continue as Pakistan’s army chief met with Iran’s parliament speaker Thursday, working to extend a ceasefire that has temporarily halted nearly seven weeks of hostilities between Israel, the U.S., and Iran.

Oil markets reflected ongoing uncertainty, with Brent crude, the international benchmark, climbing 4.7% to settle at $99.39 per barrel. Prices have fluctuated significantly since the conflict began, rising from around $70 before the war to as high as $119 at points, driven by concerns about supply disruptions in the Persian Gulf.

“The key upside risk for the market is that peace talks between the US and Iran break down,” noted ING Bank strategists Warren Patterson and Ewa Manthey. “This isn’t an unrealistic scenario, given that US and Iranian demands remain fairly wide apart.”

Meanwhile, corporate America continues to deliver stronger-than-expected earnings for early 2026, providing fundamental support for the market. PepsiCo shares rose 2.3% after reporting quarterly results that beat analyst expectations, with consumers responding positively to price cuts on popular snack brands like Lay’s, Doritos, and Cheetos announced in February.

J.B. Hunt Transport Services and Marsh & McLennan also posted strong performances, with shares climbing 6.3% and 4.4% respectively following better-than-anticipated quarterly results.

Technology stocks received a boost after Taiwan Semiconductor Manufacturing Company (TSMC), a key industry player, reported stronger-than-expected revenue and profit for early 2026. The company’s Chief Financial Officer, Wendell Huang, expressed confidence that robust demand would persist into the spring, signaling potential continued strength in the tech sector.

Not all companies fared well, however. Abbott saw its shares decline 6% despite reporting slightly better-than-expected results, as the health care company reduced its full-year profit forecast primarily due to its acquisition of cancer-screening company Exact Sciences.

Allbirds experienced a dramatic 35.8% decline, though this represented only a fraction of its 582% surge the previous day. The former footwear company is pivoting toward artificial intelligence, planning to offer high-powered AI chip rentals as a service.

Global markets also showed strength, with significant gains across Asia and Europe. Japan’s Nikkei 225 jumped 2.4%, South Korea’s Kospi rallied 2.2%, and Hong Kong’s Hang Seng rose 1.7%.

China reported 5% economic growth for the January-March quarter, an acceleration from the previous period. While economists suggest China has largely withstood initial impacts from the Iran conflict, concerns remain that its export sector could face headwinds in coming months if global economic growth slows.

In the U.S. bond market, Treasury yields edged higher after data showed fewer Americans applied for unemployment benefits last week, with the 10-year Treasury yield rising to 4.31% from 4.29% the previous day. The positive employment data adds to the complex picture facing investors as they balance geopolitical concerns against domestic economic resilience.

As markets navigate this period of geopolitical uncertainty, investor attention remains focused on diplomatic developments in the Middle East and their potential implications for global economic stability and corporate performance.