US Stocks Hit Records on Iran Ceasefire Extension
The S&P 500 and Nasdaq reached new record highs on Thursday after the United States and Iran agreed to extend their ceasefire. While Treasury yields fell and oil hit a six-week low, investors weighed revised first-quarter GDP growth of 1.6 percent against signs of firming inflation.
The S&P 500 and Nasdaq reached record highs on Thursday after the United States and Iran extended their ceasefire. This rally follows a 20% gain for the S&P 500 and a 30% surge for the Nasdaq over the last two months. Investors are weighing geopolitical relief against revised GDP growth of 1.6% and firming inflation data.
### Ceasefire Extension Offsets Economic Cooling Treasury yields fell 3 basis points and USD/JPY retreated from the 160.00 level as the truce extension lowered risk premiums. Oil hit a six-week low, while gold rose 1%. The dollar fell 0.2% on the day as investors digested a first-quarter GDP revision showing the economy contracted to a 1.6% growth pace.
