- U.S. stocks reached record highs after reports of a 60-day U.S.-Iran ceasefire agreement.
- Oil prices and Treasury yields retreated on hopes for a longer-lasting reduction in geopolitical tensions.
- Core PCE inflation data showed a 3.3% annual increase, while consumer spending growth slowed in April.
- Several individual stocks, including IBM and Snowflake, saw significant announcements driving investor interest.
Major U.S. stock indices surged to unprecedented levels on Thursday, fueled by media reports suggesting a diplomatic breakthrough between American and Iranian negotiators. A report indicated a 60-day memorandum of understanding was reached to extend the ceasefire and facilitate further nuclear talks.
Consequently, the benchmark S&P 500 rose 0.6%, while the Nasdaq 100 and Dow Jones also climbed to new records. Market sentiment was further buoyed by a notable pullback in oil prices following the news, with West Texas Intermediate futures trading near $89 a barrel. However, Treasury Secretary Scott Bessent clarified that no Iranian sanctions would be lifted without the country surrendering its enriched uranium stockpile.
Meanwhile, fresh economic data presented a mixed picture for the Federal Reserve. The core Personal Consumption Expenditures index, the Fed’s preferred inflation gauge, rose 3.3% year-over-year in April. Consumer spending, adjusted for inflation, increased just 0.1% for the month, a significant slowdown from March’s 1.6% gain.
In corporate news, International Business Machines unveiled an aggressive $10 billion plan to advance quantum computing over five years. Additionally, Snowflake’s blockbuster quarterly results and a massive partnership fueled bullish analyst calls. Eli Lilly shares also hit a record high after CVS Health confirmed it would restore coverage for the company’s weight-loss drugs.
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