Lead

Wall Street's benchmark S&P 500 closed at a record high on Wednesday, recovering all losses suffered since the start of the US-Iran conflict, as investor optimism grew over a possible de-escalation. The index settled at 7,022.95, up 0.8%, surpassing its previous closing high from January, according to data from LSEG. It also hit a new intraday record of 7,026.24.

The tech-heavy Nasdaq also climbed 1.6% to 24,016.02, itself a record, while the Dow Jones Industrial Average remained broadly flat, as reported by The Guardian.

The rally marks a sharp turnaround from the early days of the conflict, which began on February 28, when the S&P 500 slid as much as 9%—just short of the 10% threshold generally considered a correction. Both the Nasdaq and the Dow crossed that correction level during the sell-off, according to Reuters.

Coverage comparison

Two major outlets covered the market's move, each with slightly different emphases. The Guardian framed the story around growing investor confidence that the war between the US-Israel and Iran may soon end, highlighting a ceasefire deal and President Trump's public statements. Reuters, meanwhile, emphasized the role of robust earnings expectations alongside hopes of de-escalation, and noted the market's first record close since the conflict began.

Both sources agreed on the core facts: the S&P 500 closed at a new high, the Nasdaq set a record, and the development came amid optimism over the conflict's trajectory.

Key claims

  • The S&P 500 closed at a record high on Wednesday, its first since the conflict began, rising 0.8% to 7,022.95, according to both The Guardian and Reuters.
  • A two-week ceasefire deal between the US and Iran was announced last week, as reported by The Guardian. The ceasefire is set to end on April 22, though the White House denied requesting an extension, calling talks "productive and ongoing."
  • President Donald Trump said the war was "very close to over," telling Fox Business, "We've beaten them militarily, totally. We'll see what happens, I think they want to make a deal very badly." This quote was carried by The Guardian. Reuters separately reported that Trump said talks with Iran could soon resume after the first round in Islamabad collapsed.
  • Analysts expect S&P 500 companies to earn a combined $605.1 billion for the first three months of 2026, up from $598.7 billion forecast at the start of the quarter, according to LSEG data cited by Reuters.
  • Quarterly earnings reports from Bank of America and Morgan Stanley beat trading estimates, suggesting economic resilience, as reported by The Guardian. Bank of America CEO Brian Moynihan told CNBC: "The consumers are spending, the credit quality is very good and improving... Our global companies are doing pretty well."

Perspectives

The rally reflects a broader market sentiment that the worst of the conflict may be over. Both outlets noted that investors are returning to risk assets, with several brokerages viewing the selloff as a buying opportunity, according to Reuters.

However, risks remain. Reuters cautioned that the prospect of renewed escalation looms, and that any flare-up could test the market's confidence. Even if geopolitical risks fade, concerns that dominated before the war—particularly around artificial intelligence disruption—could re-emerge.

The Guardian also mentioned that the US plans to conduct its own blockade of the Strait of Hormuz, a crucial oil chokepoint, though this did not appear to unsettle Wall Street.

Overall, while the market's recovery is notable, both reports suggest that the path forward is uncertain, with geopolitical and economic risks still present.