

The S&P 500 closed at a new record high Wednesday, its first since the U.S.-Iran conflict began, as hopes of a de-escalation in the war and robust earnings expectations drew investors back into risk assets.
The S&P settled at 7,022.95, up 0.8%, LSEG data showed, surpassing its previous closing high in January. It also hit a new intraday record of 7,026.24. U.S. President Donald Trump has said talks with Iran to end the war could soon resume after the first round of talks in Islamabad collapsed. Equity markets fell sharply last month when hostilities erupted, unleashing a historic shock to oil markets and reviving concerns about inflation and the outlook for U.S. interest rates.
The S&P 500 slid as much as 9% after the conflict broke out on February 28, stopping short of the 10% level generally defined as a correction. The Nasdaq and Dow Jones Industrial Average both hit that 10% correction level during the selloff. Markets have drawn support from expectations for strong corporate earnings. Executives at big banks said the U.S. consumer remained resilient despite the oil shock, while the pipeline for deals and IPOs was robust. Analysts expect S&P 500 companies to earn a combined $605.1 billion for the first three months of the year, up from $598.7 billion forecast at the start of the quarter, according to LSEG data.
Source: Reuters
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