The S&P 500 index, which includes the 500 companies with the largest capitalization on the American stock exchange, rose to a record level on Wednesday during the session. Investors on Wall Street are buying shares on a wave of optimism related to the ceasefire between the US and Iran and solid company results.
See also: “The US and Iran want to give each other more time.” Another two weeks in the game
The S&P 500 index increases by 0.7%, reaching a new daily high of 7,018.59 points. The previous daily high at the end of January was 7,002.28 points. The financial and technology sectors are the growth leaders.
An all-time record on Wall Street
The selloff late last month pushed the S&P 500 index more than 9%. below the peak. The decline comes after a surge in oil prices sparked by the war with Iran, which threatened to slow economic growth and increase inflation — raising fears of 1970s-style stagflation, Bloomberg notes.
Stock exchanges are making up for losses. Great hopes for peace
But signs of easing tensions in the Middle East, coupled with optimism about artificial intelligence and corporate profits, have prompted skeptics to abandon cautious views, the agency said.
Investors are buying stocks en masse, hoping for another round of talks between the US and Iran. As reported by overseas media on Wednesday, both countries are closer to extending the ceasefire and resuming negotiations on a long-term peace agreement, despite the worsening deadlock in the Strait of Hormuz.
So-called systematic investors are ready to invest a record amount in U.S. stocks, Goldman Sachs traders wrote in a note to clients in early April.
Technology stocks in particular have seen sharp gains since the ceasefire agreement, Bloomberg estimates.
See also: Record profits of the world's largest bank. How did this happen despite the war?
Company results
It's quarterly earnings season in the US. Morgan Stanley shares rose more than 4% on Wednesday. after better-than-expected results for the first quarter (profit was 13% higher than forecast).
Bank of America also surprised positively with its results. The share price gained 1.8%. The reason for the increase was information with the highest quarterly revenues from trading activities in over a decade. Net profit increased by 9.9%. above analysts' forecasts.
The day before, better-than-expected results were shown by: JP Morgan (9.2% above forecasts) and Citigroup (16.4% above forecasts).
