S&P 500 and Nasdaq close at fresh record highs amid market rally

The S&P 500 and Nasdaq Composite closed at fresh record highs on Wednesday, April 22, as investors bought stocks after the U.S. extended its ceasefire with Iran. (cnbc.com) The S&P 500 gained 1.05% to 7,137.90, and the Nasdaq rose 1.64% to 24,657.57. The Dow Jones Industrial Average added 340.65 points, or 0.69%, to 49,490.03. (cnbc.com) President Donald Trump said late Tuesday that he was extending a two-week U.S. ceasefire with Iran. CNBC reported that stronger-than-expected earnings also helped lift sentiment. (cnbc.com) The move capped a sharp rebound that had already carried the S&P 500 back above its prewar levels. CNBC reported the index had erased all of its Iran-war losses by the prior week. (cnbc.com 1) (cnbc.com 2) That rebound came after a March sell-off tied to fears that war and disrupted oil flows through the Strait of Hormuz would hit growth and reignite inflation. Roughly 20% of the world’s oil and natural gas transits through that route, CNBC reported. (cnbc.com) By April 15, the S&P 500 had already posted a record close at 7,022.95 and the Nasdaq had climbed 1.59% to 24,016.02, even as the Dow slipped 72.27 points. The Nasdaq’s winning streak had reached 11 sessions by then. (cnbc.com) CNBC reported on April 16 that the S&P 500 had risen about 11% from its March 30 low. Joe Seydl of J.P. Morgan Private Bank said stocks were pricing what the world may look like in six to 12 months, not current headlines. (cnbc.com) Even with the record close, the backdrop was not clean. CNBC reported that Iran’s navy said on April 22 it had seized two container ships in the Strait of Hormuz and that Brent crude had moved above $100 a barrel. (cnbc.com) The market’s message on April 22 was that traders were still willing to chase risk despite war, higher oil, and a fragile ceasefire. For now, record highs have held as investors keep betting the conflict will not last. (cnbc.com 1) (cnbc.com 2)