The S&P 500 and Nasdaq closed at fresh record highs on Thursday, capping a strong week fueled by optimism that tensions with Iran may ease. The S&P 500 advanced 0.3% to a new all-time high, while the Nasdaq climbed 0.4% to 24,100, and the Dow Jones Industrial Average added 115 points.
Sentiment improved further after President Trump announced that Israel and Lebanon had agreed to a 10-day ceasefire beginning at 5 p.m. ET, a development viewed as an important step toward potential U.S.-Iran negotiations.
On a sector basis, energy, materials, and real estate outperformed, whereas healthcare and consumer discretionary stocks lagged. PepsiCo gained 2.5% after posting earnings and revenue that topped forecasts, and Bank of New York Mellon rose 2% on stronger-than-expected results.
Not all earnings were well received. Charles Schwab dropped 7% after disappointing results, and Abbott Laboratories slid more than 6% following weak forward guidance. Netflix Inc. also weighed on sentiment, projecting a softer-than-expected second quarter, which pushed its shares lower. The company additionally announced that co-founder Reed Hastings will step down as chairman after 29 years in the role.
