The S&P 500 and Nasdaq Composite closed at record highs on Wednesday, overcoming investor concerns about inflation and the economic impact of the Iran conflict. The S&P 500 rose 0.8% to finish at 7,023, surpassing its previous peak of 6,979 set on January 27. The Nasdaq jumped 1.6% to close at 24,016, topping its October 2025 record of 23,958 and marking its 11th consecutive day of gains—the longest such streak since 2021.
Despite the Dow Jones Industrial Average slipping 0.2% to close lower, the broader market rally reflected a sharp turnaround from late March, when the Dow entered correction territory after five straight weeks of losses. Analysts noted that investor sentiment has shifted quickly, with growing optimism that the Middle East conflict will de-escalate soon.
Although the war has contributed to higher gasoline prices and inflation, market participants believe its economic effects will be temporary if a resolution is reached. “I feel like it’s becoming the consensus view that this will be resolved, in which case the current impact from it, the economic fallout, will be brief,” said Adam Crisafulli, head of Vital Knowledge.
President Trump told Fox News on Wednesday that the fighting in Iran is “very close to over,” while Wells Fargo’s Scott Wren expects the conflict to last weeks, not months. Investors are betting that the Strait of Hormuz, a critical route for global oil shipments, will reopen shortly, which could ease pressure on energy markets.
U.S. Producer prices rose more slowly than expected in March, up 0.5% from the prior month compared to forecasts of a 1.1% increase, offering some relief on inflation fronts amid the geopolitical tension. Oil prices also declined, with West Texas Intermediate falling 7% to trade near $91 a barrel and Brent slipping 4% to around $95, as hopes for an extended truce between the U.S. And Iran grew.
On the earnings front, JPMorgan Chase reported a 13% increase in profits, with CEO Jamie Dimon acknowledging an “increasingly complex set of risks” facing the economy. BlackRock, Wells Fargo, and Citigroup also posted better-than-expected results, adding to market momentum.
