Pre-Market Update: S&P 500 Tops 7,000 and Nasdaq Hits Record High on Iran Ceasefire Hopes

TLDR

• The S&P 500 closed above 7,000 for the first time ever on Wednesday
• The Nasdaq posted an 11-session winning streak, its longest since November 2021
• Hopes for a US-Iran ceasefire extension are driving investor confidence
• Bank of America and Morgan Stanley earnings helped support the rally
• Netflix, PepsiCo, and Charles Schwab are set to report earnings Thursday

US stock futures are pointing higher on Thursday after a strong session on Wednesday pushed both the S&P 500 and Nasdaq Composite to fresh all-time closing highs.

The S&P 500 closed above 7,000 points for the first time in its history. The Nasdaq closed above 24,000 and recorded an 11-session winning streak, the longest streak since November 2021.

S&P 500 futures added 0.1% in early Thursday trading. Nasdaq 100 futures gained 0.2%. Dow Jones futures edged up less than 0.1%.

The main driver behind the rally is growing optimism that the US and Iran will extend their current two-week ceasefire, which is set to expire on April 22.

Both sides are reportedly engaged in indirect talks. White House press secretary Karoline Levitt confirmed on Wednesday that the US is “very much engaged in these negotiations.”

What’s Driving the Rally

Tech stocks led gains on Wednesday, helping the Nasdaq outpace the broader market. Solid earnings from Bank of America and Morgan Stanley also gave investors confidence.

Chris Zaccarelli, chief investment officer at Northlight Asset Management, said the fundamentals behind the rally are solid.

He added that traders are buying now with the expectation that a resolution is coming, though he acknowledged a risk the conflict could reignite.

Earnings and Economic Data on Deck

Several major companies are scheduled to report earnings on Thursday, including Netflix, PepsiCo, and Charles Schwab.

On the economic side, weekly jobless claims data is due, along with a March update on industrial production.

Oil prices stayed elevated despite ceasefire hopes. Brent crude climbed 0.6% to $95.54 a barrel. West Texas Intermediate rose 0.7% to $91.97 a barrel.

The dollar was flat against a basket of major currencies. The yield on the 10-year Treasury note slipped one basis point to 4.27%.

Jobless claims data released Thursday morning showed claims easing back slightly from the prior week.

The dollar turned higher later in the morning as uncertainty grew over the exact timing of US-Iran talks, according to market reports.

Treasury yields mostly fell on cautious optimism around a potential Middle East peace deal.

As of early Thursday trading, E-Mini S&P 500 futures were at 7,070, and E-Mini Nasdaq 100 futures sat at 26,414.

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