S&P 500 and Nasdaq hit record highs, erasing Iran war impact
The S&P 500 and Nasdaq both hit record highs Wednesday as investors appear to look past continued uncertainty of the war with Iran.
The S&P 500 climbed 56 points, or 0.8%, to close at 7,023, topping its previous high of 6,979 on Jan. 27.
The Nasdaq Composite Index also jumped 377 points, or 1.6%, to 24,016, eclipsing its previous record of 23,958 in October 2025. The Nasdaq has seen 11 consecutive days of gains.
One factor possibly driving the stocks is President Trump's remarks Tuesday that the war is "very close to over," coupled with the possibility of a second round of negotiations with Iran.
Another possible contributor to the rally is a slight decline in oil prices — which were below $100 a barrel Tuesday. Oil prices are still significantly higher than they were in late February, when the war began, but it is a positive signal for traders.
Earnings season has also started strong, with the big banks showing good results. Despite the uncertainty, it's an early indicator that companies may pull out a win this quarter.
The rally marks a sharp reversal from late March, when the Dow fell into correction territory — a drop of at least 10% from its recent high — after five straight weeks of losses, underscoring how quickly investor sentiment has shifted.
By Kelly O'Grady, Mary Cunningham
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