Today Fundamental Analysis: Nasdaq and S&P 500 reach new record highs with growing optimism in the market

Investor sentiment in the global markets has improved as President Donald Trump said the Iran conflict is very close to over, while reports suggest a second round of negotiations between the US and Iran is under discussion. This optimism has helped global stocks recover losses linked to the conflict. Meanwhile, oil prices remained volatile but relatively stable, reflecting cautious optimism around diplomacy.

U.S. Stock indices had a strong session on Wednesday in which both the S&P 500 breaking above 7,000 again and Nasdaq Composite closed at fresh record highs. During session, the S&P 500 rose 0.8% and the Nasdaq gained 1.6%, extending its winning streak, while the Dow slipped modestly.

Asia-Pacific markets extended their rally on Thursday, led by Japan, where the Nikkei 225 hit a record high of 59,688 as investors responded positively to growing hopes of a potential U.S.–Iran peace deal. Japan’s gains were driven by technology and consumer stocks, while other regional markets such as South Korea, India, China, and Hong Kong also moved higher.

In China, first-quarter GDP growth came in stronger than expected at 5%, supported by exports, though the broader outlook remains challenged by higher energy prices and weaker domestic demand.

Markets have now fully recovered losses linked to the Iran conflict. Investors are now watching the next catalysts, including earnings reports from different companies and U.S. weekly jobless claims.

Gold remains firm near $4,835, staying close to a recent multi-week high as a weaker US dollar continues to support prices. The dollar has come under pressure from growing optimism that U.S.–Iran diplomacy may resume, along with reduced expectations for Fed rate hikes after softer U.S. inflation data and easing oil prices. However, upside in gold may remain limited because geopolitical risks are still present.

AUTHOR

Ghassan Albohtori 

Financial Market Analyst - STARTRADER

Ghassan Albohtori is a financial market analyst with experience in macroeconomics, investing, and currency trading. He conducts in-depth market research covering fundamental and technical analysis of different instruments to find major changes in market trends. Mr. Ghassan's main focus is the effects of economic data on different asset classes and how this affects prices.

Risk Disclaimer: This material is provided for informational purposes only and does not constitute a recommendation or investment advice. Trading financial instruments on margin involves substantial risk and may not be appropriate for all investors.