The S&P 500 edged higher on Wednesday, gaining 0.2% as it approached its all-time highs, buoyed by easing geopolitical tensions and an improving risk outlook.
The Nasdaq Composite rose 0.6%, while the Dow Jones Industrial Average slipped 47 points, or 0.1%.
The S&P 500 is now less than 1% away from both its intraday record of 6,147.43, set on February 19, and its closing high of 6,144.15.
The Nasdaq is similarly trading just below its December peak, reflecting renewed investor optimism.
Markets have strengthened this week amid a de-escalation in Middle East tensions.
A ceasefire between Iran and Israel — announced by US President Donald Trump after a weekend of US airstrikes on Iranian nuclear facilities — helped ease fears of prolonged conflict and its impact on global oil supply.
The S&P 500 has gained 2% so far this week, bolstered by the relatively restrained Iranian response and improving sentiment.
Strategists are growing more bullish. BMO Capital Markets’ Brian Belski raised his year-end target for the S&P 500 to 6,700 from 6,100, implying roughly 10% upside from Tuesday’s close.
In a note, Belski said, “Markets are transitioning TO ‘show me’ FROM ‘scare me’,” citing broader performance participation and a calming reaction to daily geopolitical rhetoric.
He expects increased corporate guidance following the second-quarter earnings season to further support equities.
Jerome Powell on rate cuts
Federal Reserve Chair Jerome Powell is set to appear before the Senate Banking Committee on Wednesday, continuing his semiannual testimony to Congress.
A day earlier, speaking to the House Financial Services Committee, Powell indicated that the central bank will maintain its current policy stance as it monitors the economic impact of President Trump’s escalating tariff measures.
“The effects of tariffs will depend, among other things, on their ultimate level,” Powell said, signaling the Fed’s wait-and-see approach as trade policy remains in flux.
Today, Chair Powell presents the semiannual Monetary Policy Report before the U.S. House Financial Services Committee: federalreserve.gov/newsevents/tes…
federalreserve.gov/monetarypolicy…
Watch live: financialservices.house.gov
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Powell’s appearance comes amid renewed public criticism from Trump, who in a Truth Social post on Tuesday called the Fed chair “very dumb” and argued that interest rates “should be at least two to three points lower.”
When asked about the attacks during his testimony, Powell downplayed their significance, stating: “We’re doing our jobs.”
He added that political commentary was “having no effects” on the Fed’s policy decisions.
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