US Indices Reach New Heights Amid Middle East De-escalation

Major U.S. equity indices extended their rally on Thursday, with the S&P 500 and Nasdaq both securing new record closing highs. The Nasdaq Composite continued its exceptional momentum, marking its 12th consecutive daily gain—the longest winning streak for the tech-heavy index since July 2009. Market sentiment was primarily driven by optimism surrounding the Middle East. Investors reacted positively to Israel's ceasefire agreement with Lebanon and statements from President Trump regarding potential renewed talks between the U.S. and Iran this coming weekend. Despite the broad market gains, several high-profile stocks faced significant pressure. Netflix shares dropped approximately 9% in extended trading following the announcement that co-founder and Chairman Reed Hastings will step down in June. This exit follows the company's failed $72 billion bid for Warner Bros Discovery. In the financial sector, Charles Schwab saw its shares tumble 7.5% despite reporting record first-quarter profits. Simultaneously, medical device manufacturer Abbott fell 6% to its lowest level since November 2023 after the company lowered its full-year profit outlook. Analysts suggest that while liquidity and strong earnings are fueling 'animal spirits,' sustained momentum may require more definitive signals of peace to offset ongoing volatility in energy costs and global input prices.