U.S. stocks ended Wednesday's trading session with mixed results. The Nasdaq Composite Index advanced for the 11th consecutive day, while the S&P 500 Index reached a new all-time high. Market participants continued to monitor developments in U.S.-Iran negotiations and the broader Middle East situation. Comments from the U.S. President suggesting that a conflict with Iran was "very close to over" and that an agreement could be reached this week influenced sentiment.
The Dow Jones Industrial Average declined by 72.27 points, or 0.15%, to close at 48,463.72. Conversely, the Nasdaq Composite rose by 376.93 points, or 1.59%, finishing at 24,016.02. The S&P 500 gained 55.57 points, or 0.80%, settling at 7,022.95.
During the session, the S&P 500 climbed to an intraday peak of 7,026.24, surpassing its previous record high of 7,002.28 set on January 28. The index has now risen in 10 of the past 11 trading days. The technology-heavy Nasdaq also extended its winning streak to 11 sessions.
Market optimism was bolstered by the potential for an agreement between the U.S. and Iran. According to an Iranian state media report, a Pakistani delegation was en route to Iran to convey a message from the U.S. and formulate plans for a second round of talks.
Citing two U.S. officials, a media report on the 15th indicated that the U.S. and Iran had made progress during discussions on the 14th, moving closer to a "framework agreement to end the war."
The U.S. President stated on Monday that "the other side has called us," adding, "They want to make a deal very badly."
A White House official said on Tuesday that a second round of talks between Washington and Tehran was under consideration. The official, who spoke on condition of anonymity to discuss internal planning, noted that no formal agenda had been set.
The President fostered hopes that the conflict might not last much longer, remarking in a Wednesday interview that an extension of the truce with Iran might be unnecessary. He expressed the view that the war was "very close to over" and hinted that new negotiations could commence as early as this week.
When asked if the war had concluded, he replied, "I think it's close to over. Yes. I mean, I think it's very close to over."
He further stated, "If I were to pack up and leave now, it would take them 20 years to rebuild that country. We're not finished, but we'll see what happens next. I think they want to make a deal very badly."
In a separate interview, the President hinted at a significant development this week, saying, "I think you're going to see something amazing over the next two days."
"It could go either way, but I think a deal is desirable because then they can rebuild. They do have a different regime now. In any event, we've cleared out the militants. They're gone, they're not with us anymore," he claimed.
Speculation intensified on Wednesday that talks between the U.S. and Iran could resume as soon as Thursday, following a breakdown over the weekend after 21 hours of negotiation.
Despite the President's hints of a swift end to the conflict, oil prices held steady during early European trading on Wednesday.
Meanwhile, a blockade of the Strait of Hormuz initiated by the U.S. on Monday appeared to have passed its first significant test, with U.S. forces successfully intercepting all vessels attempting to breach the blockade.
Thomas Martin, Senior Portfolio Manager at Globalt Investments, commented, "The market's posture before the conflict involved some defensive positioning by participants anticipating a potential worsening of conditions. Now that the likelihood of that seems reduced, they need to buy. People don't want to miss out on a rising market."
Martin added, "Will there be a deal that allows the Strait of Hormuz to reopen and reduces the rhetoric about blocking cargo? The market seems to be saying it believes such a deal will happen."
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