Markets on a Roll as Ceasefire Hopes Push Stocks to Fresh Highs

CNBC, AP, Market Watch, and Investor’s Business Daily contributed to this report.

Wall Street kept the rally alive Thursday, with the S&P 500 and Nasdaq nudging into record territory again. Not huge moves – but enough. The S&P edged up about 0.1%, the Nasdaq matched it, and the Dow added roughly 70 points. Small gains, big signal.

It’s been a strong week. The S&P has climbed more than 3%, the Nasdaq over 5%, while the Dow has lagged slightly but still pushed higher. Momentum is clearly on the bulls’ side.

What’s driving it? Geopolitics – for once, in a good way.

President Donald Trump said he had spoken with both Lebanon’s president and Israel’s prime minister, with a 10-day ceasefire set to begin Thursday evening. That matters. Israel pausing attacks has been one of the key conditions for broader Iran war negotiations to even get started.

Trump also suggested the conflict could be “very close to over,” claiming Tehran is eager to strike a deal. Behind the scenes, a second round of talks is being discussed, though nothing is locked in yet.

Investors are leaning into that optimism. The S&P has already erased its war-related losses from earlier in the year. On Wednesday, it closed above 7,000 for the first time ever, while the Nasdaq broke through 24,000. The tech-heavy index is now riding an 11-day winning streak – its longest in years.

Still, not everyone is convinced the party lasts.

There’s a growing sense that markets may be getting ahead of themselves. Even if a peace deal lands soon, the economic aftershocks won’t just disappear. Slower growth is already creeping into forecasts.

Rob Williams at Sage Advisory put it bluntly: expect a couple of weak GDP quarters. Growth hovering around 2% could dip lower in the near term. And markets? They may not be fully priced for that yet.

Meanwhile, oil prices are flashing a warning sign. Brent crude has surged from around $70 before the war to as high as $119 at points, and it’s still elevated. That tension – stocks up, oil up – suggests investors aren’t entirely relaxed.

Under the surface, there’s plenty of movement.

A batch of companies hit fresh all-time highs, including names in finance, tech and logistics. Chip stocks are on a tear again, with Advanced Micro Devices extending its winning streak. Some industrial and AI-linked firms are also catching bids.

But it’s not all green. Abbott shares dropped sharply after weak guidance, even though its earnings beat expectations. Taiwan Semiconductor slipped too, despite posting strong results, as investors weighed its aggressive spending plans.

Retail investors, who had been sitting on the sidelines, are starting to pile back in. JPMorgan data shows a sharp pickup in activity, especially in individual stocks. Classic late-stage rally behavior? Maybe. Or just catching up.

Elsewhere, the IPO market showed signs of life. Madison Air jumped nearly 20% on its debut after raising over $2 billion, a reminder that risk appetite hasn’t disappeared.

So here we are: markets hitting records, powered by hopes of peace. The mood is upbeat, but not carefree. Oil is high, growth could slow, and the geopolitical story isn’t finished yet.

For now, though, traders are choosing to focus on the upside – and it’s paying off.