Optimism surrounding a potential de-escalation in the U.S.-Iran conflict lifted global markets on Wednesday, pushing the Nasdaq Composite and S&P 500 to fresh record highs, while Bitcoin continued its upward momentum toward the $75,000 mark.
Summary
The Nasdaq Composite and S&P 500 hit all-time highs as technology stocks surged more than 2% on signs of diplomatic progress in the Middle East.
Bitcoin climbed above $75,000, extending a two-week rally of nearly 10%, with analysts calling the current setup a tactical entry opportunity.
Donald Trump stated that the conflict with Iran is “very close to ending,” though he stressed that a final outcome depends on successful negotiations.
According to Yahoo Finance data, the Nasdaq Composite rose 1.59% to close at 24,016.02, while the S&P 500 gained 0.8% to settle at a record 7,022.95. The rally was largely driven by the technology sector, which advanced 2.08% during the session.
In the crypto market, Bitcoin increased 1.07% to $75,229, continuing its strong two-week climb as investor sentiment improved.
Market confidence strengthened following comments from the White House regarding easing tensions in the Middle East. President Donald Trump, speaking to Fox Business, said the conflict is nearing an end but emphasized that a resolution hinges on the success of ongoing negotiations.
The White House also confirmed that a second round of talks is expected to take place in Islamabad, with JD Vance attending discussions in Pakistan. While the administration is aiming for a comprehensive agreement, officials acknowledged that a significant trust gap still exists between the two sides.
Trump added that the extent of damage in the conflict has increased pressure on Iran to negotiate, stating that the country is eager to reach a deal.
Analysts see more upside
Market experts believe the rally could extend further. Tom Lee noted that equities have shown resilience despite geopolitical tensions, with many investors still sitting on cash and waiting for clarity before re-entering the market.
In a recent post, Lee highlighted that markets often bottom during periods of negative news rather than positive developments, suggesting the current backdrop could support further gains.
He added that the next leg of the rally is likely to be driven by mega-cap tech stocks, particularly the “Magnificent Seven,” along with strength in software companies and digital assets like Bitcoin and Ether.
