S&P 500 Breaks Historic 7,000 Mark as Nasdaq Extends Win Streak on Ceasefire Optimism

TLDR

• S&P 500 made history by surpassing the 7,000-point threshold on Wednesday
• Nasdaq achieved its longest winning streak in over three years, extending gains for 11 consecutive sessions
• Growing expectations of extended US-Iran ceasefire fueling bullish sentiment
• Strong quarterly results from Bank of America and Morgan Stanley bolstered market momentum
• Thursday brings earnings reports from Netflix, PepsiCo, and Charles Schwab

US equity index futures traded in positive territory Thursday morning, building on Wednesday’s impressive performance that propelled the S&P 500 and Nasdaq Composite to unprecedented closing records.

The benchmark S&P 500 index achieved a historic milestone by finishing above the 7,000-point level. Meanwhile, the Nasdaq breached 24,000 and extended its consecutive daily gains to 11 sessions—a streak not witnessed since November 2021.

E-Mini S&P 500 Jun 26 (ES=F)

In pre-market activity Thursday, S&P 500 futures advanced 0.1%. Nasdaq 100 futures climbed 0.2%, while Dow Jones futures registered a modest uptick of under 0.1%.

The primary catalyst propelling this remarkable advance is mounting anticipation that Washington and Tehran will prolong their existing 14-day ceasefire agreement, which reaches its expiration date on April 22.

Reports indicate both nations are participating in indirect diplomatic discussions. White House press secretary Karoline Levitt acknowledged Wednesday that the administration remains “very much engaged in these negotiations.”

What’s Driving the Rally

Technology shares spearheaded Wednesday’s advance, propelling the Nasdaq’s outperformance relative to broader indices. Encouraging quarterly results from Bank of America and Morgan Stanley further reinforced investor sentiment.

Chris Zaccarelli, chief investment officer at Northlight Asset Management, characterized the rally’s foundation as fundamentally sound.

“The underlying fundamentals are strong enough to support this bull market and it appears that both sides want this war to end,” he said.

Zaccarelli noted that market participants are positioning themselves ahead of an anticipated resolution, while recognizing the possibility that hostilities could resume.

Earnings and Economic Data on Deck

Thursday’s calendar features earnings announcements from several high-profile corporations, including Netflix, PepsiCo, and Charles Schwab.

Economic releases include the weekly initial jobless claims report and March figures for industrial production.

Oil prices maintained elevated levels notwithstanding ceasefire optimism. Brent crude advanced 0.6% to reach $95.54 per barrel, while West Texas Intermediate increased 0.7% to $91.97 per barrel.

The US dollar index remained unchanged versus a basket of major global currencies. The benchmark 10-year Treasury yield declined one basis point to settle at 4.27%.

Thursday morning’s jobless claims data revealed a modest decline from the previous week’s level.

The greenback strengthened later in the session as ambiguity surrounding the precise timeline of US-Iran negotiations intensified, market observers reported.

Treasury yields predominantly declined on cautious optimism regarding a possible Middle East diplomatic breakthrough.

As of early Thursday trading hours, E-Mini S&P 500 futures stood at 7,070, with E-Mini Nasdaq 100 futures positioned at 26,414.

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