Diplomatic progress between the US and Iran fuels risk appetite, driving the S&P 500 to all-time highs amid easing geopolitical tensions.
The S&P 500 reached new record highs as optimism grew over a potential US-Iran deal to end the conflict. Reports indicated both sides were nearing a one-page agreement, with Iran expected to respond to key US demands within 48 hours.
Prior sessions saw gains on reduced war risks, following the US pausing military operations and declaring objectives met. Markets have priced in a diplomatic resolution, though stretched positioning leaves equities vulnerable to setbacks.
A deal could trigger a sharp drop in oil prices, easing inflation concerns and bolstering expectations for Fed rate cuts. However, focus may soon shift back to economic data and Fed policy.