New all-time highs for S&P 500 and Nasdaq reflect investor bets on de-escalation, not fundamentals

The S&P 500 rose 0.80% to 7,022.95, setting a new all-time high. The Nasdaq Composite climbed 1.59% to 24,016.02, also reaching a record high. The rally was driven by optimism over potential U.S.-Iran peace talks and early earnings gains. Investors bid up tech stocks including Microsoft (MSFT +4.61%), Oracle (ORCL +4.27%), ServiceNow (NOW +7.18%), and Salesforce (CRM +3.67%). Robinhood shares (HOOD +10.41%) surged after SEC approval of a new day-trading rule proposal. Allbirds (BIRD +582.33%) jumped after announcing a shift from footwear to an AI-focused business model. Markets are pricing in reduced geopolitical risk despite ongoing restrictions at the Strait of Hormuz and elevated oil prices. The economic impact of recent energy price increases remains unclear, but equity markets are signaling resilience. Long-term investors are advised to maintain diversified portfolios across geographies, industries, and asset classes.