Dow Jones rises 115 points as S&P 500 and Nasdaq hit records on Iran hopes

Wall Street extended its rally on Thursday, with the Dow Jones Industrial Average rising alongside fresh record highs in the S&P 500 and Nasdaq Composite, as investors grew increasingly optimistic about a potential easing of geopolitical tensions tied to the Iran conflict.

Index performance and record streaks

The S&P 500 rose 0.26% to close at 7,041.28, while the Nasdaq Composite gained 0.36% to settle at 24,102.70. Both indices notched intraday and closing records, with the Nasdaq extending its winning streak to 12 consecutive sessions—its longest run since 2009. The Dow Jones Industrial Average added 115 points, or 0.24%, to end at 48,578.72.

For the week, the S&P 500 and Nasdaq have advanced 3.3% and 5.2%, respectively, while the Dow has gained more than 1%, underscoring the strength of the current rally.

Ceasefire hopes lift sentiment

Markets drew support from geopolitical developments after Donald Trump confirmed that Israel and Lebanon had agreed to a 10-day ceasefire, set to begin at 5 p.m. ET. The US president said he had spoken with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu ahead of the announcement.

The ceasefire is viewed as a key step toward broader de-escalation, as halting Israeli attacks on Lebanon has been a condition for restarting US-Iran negotiations. Trump also indicated that the next round of talks between Washington and Tehran could take place probably, maybe, next weekend. Earlier this week, Trump said the Iran war is very close to over, adding that Tehran wants to make a deal very badly.

These developments have helped fuel a rally that has seen the S&P 500 erase all losses recorded since the start of the conflict.

Choppy trading as headlines continue

Despite the upbeat tone, market action was described as choppy, with investors reacting to a steady flow of headlines related to the conflict. The latest gains build on milestones reached earlier in the week, with the S&P 500 closing above the 7,000 mark for the first time and the Nasdaq surpassing 24,000.

Some strategists cautioned that sustained gains may depend on clearer progress toward a diplomatic resolution. Robert Phipps, a director at Per Stirling Capital Management, said the war remains the single most important driver of the market, adding that markets need to refocus on underlying fundamentals.

Economic signals and earnings in focus

Beyond geopolitics, investors are also weighing mixed economic signals. Data released Thursday showed that new applications for US unemployment benefits fell more than expected, suggesting the labor market remains stable. At the same time, employers appear cautious about hiring as the conflict continues to weigh on the broader economic outlook.

Corporate earnings also contributed to stock-specific moves. PepsiCo gained after beating profit estimates, while Abbott Laboratories declined after cutting its full-year forecast. Charles Schwab also fell following its results, while Netflix dropped 8% after market trading following the company announced that co-founder and chairman Reed Hastings will step down.

Other notable movers included Voyager Technologies, which rose after securing a NASA contract, and Myseum, which rallied following its AI-focused rebrand.

As earnings season gathers pace, analysts expect market performance to become increasingly driven by company-specific developments, even as geopolitical headlines continue to shape broader sentiment.