US stocks extended their advance on Thursday, with major indices closing at or near record highs as hopes for progress in US‑Iran talks and a new Middle East ceasefire outweighed lingering geopolitical risks.
Major indices notch fresh milestones
The Dow Jones Industrial Average rose 90 points, or 0.2%, finishing above 48,500 after trading in a wide range and briefly slipping to 48,275 earlier in the session.
The S&P 500 gained 0.3% and, for the first time, closed above the 7,000 mark. The Nasdaq Composite outperformed with a 0.4% rise, setting another record high.
On the week, the S&P 500 is up more than 3%, the Nasdaq has climbed over 5%, and the Dow has added about 1%, underscoring a steady move into risk assets.
Ceasefire deal underpins hopes for US‑Iran dialogue
The rally accelerated after President Trump announced a 10‑day ceasefire agreement between Israel and Lebanon, reached after talks with Lebanese President Michel Aoun and Israeli Prime Minister Benjamin Netanyahu.
The truce, scheduled to begin at 21:00 GMT, has been cited by Tehran as a key condition for entering formal discussions with Washington. Preparations for a second round of negotiations were reported, raising expectations of a broader easing in regional tensions.
However, reports from Jerusalem pointed to frustration among Israeli leaders, who were informed of the ceasefire before an internal security cabinet vote had concluded. Military officials said Israeli forces would remain south of the Litani River in the existing “security zone,” and analysts warned that uncertainty around implementation remains a short‑term risk for market sentiment.
US jobless claims signal labor resilience
Economic data added to the positive tone. Initial jobless claims fell by 11,000 to 207,000 in the week ending April 11, the largest weekly drop since February, according to the Bureau of Labor Statistics. The prior week’s reading was revised down to 218,000.
Continuing claims rose by 31,000 to 1.818 million for the week ended April 4, but economists said the overall picture still points to a resilient labor market.
The figures suggest underlying employment stability despite geopolitical headwinds. Analysts noted that the Federal Reserve has scope to keep rates on hold while it tracks signs of slowing growth, with some forecasts now projecting US output slipping below 2% in coming quarters.
Mixed earnings moves in Dow components
Corporate results produced uneven reactions among major blue chips:
- Abbott Laboratories fell about 4% after cutting its full‑year profit outlook, linked to a planned $23 billion acquisition.
- Charles Schwab dropped nearly 4% despite reporting record first‑quarter earnings, as traders focused on margin pressures and forward guidance.
- PepsiCo edged up 0.3% following better‑than‑expected results.
- Bank of New York Mellon climbed 1.3% after posting stronger profits and revenue.
TSMC highlights strength in AI demand
Beyond the Dow, Taiwan Semiconductor Manufacturing Company reported robust first‑quarter numbers that underscored ongoing demand for advanced chips tied to artificial intelligence.
Net income rose 58% year on year to T$572.5 billion, supported by a 35% increase in revenue. The company guided annual capital spending toward the upper end of its T$52 billion–T$56 billion range, reinforcing the view that global AI infrastructure build‑out remains in full swing and providing an additional lift to large technology names.
Focus shifts to Netflix and Friday’s quiet calendar
After the closing bell, attention turned to Netflix’s quarterly update, seen as a gauge of continued momentum in growth and technology sectors.
In after‑hours trading, Dow futures were little changed near 48,760. Futures tied to the S&P 500 and Nasdaq 100 were up roughly 0.1%.
With no major US economic releases scheduled for Friday, overnight direction is expected to hinge on earnings headlines and fresh developments in the Middle East. Traders are watching whether the new ceasefire holds and whether it can pave the way for substantive US‑Iran negotiations, both of which remain central drivers for early‑session risk appetite.
Digital assets track equity rally
Risk‑on sentiment extended into digital assets, which have increasingly moved in tandem with traditional markets.
Total digital asset market capitalization has rebounded to about $2.4 trillion, recovering from a first‑quarter drawdown of more than 20%. The leading decentralized asset has climbed toward $75,000, trading closely in line with the S&P 500 and reflecting growing willingness among market participants to take on volatility as fears of wider conflict ease.
Spot exchange‑traded funds tied to the asset posted net inflows of more than $411 million in a single session this week, suggesting renewed demand from large buyers and helping to establish a price floor.
The second‑largest digital asset has advanced 2.4% to $2,376, supported by higher network activity and rising leveraged positioning. Open interest in its futures has reached $33.7 billion, indicating that traders are actively adding exposure in anticipation of further upside.
Network fundamentals appear strong, with the total amount staked increasing by 550,000 units so far in April to more than 39.2 million, a sign of continued confidence in the protocol’s long‑term security.
Risks from leverage and geopolitics remain
Despite the upbeat tone across equities and digital assets, market professionals warn that elevated leverage in derivatives could magnify any pullback. A breakdown in the diplomatic progress highlighted by Trump’s ceasefire announcement could quickly reverse sentiment, pushing capital out of higher‑beta trades and back into traditional safe‑haven assets.
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