S&P 500 hits new all-time high despite Iran war

Key Points:

• The S&P 500 reached a new all-time high of 7,022.95 on Wednesday, surpassing its previous record from January despite ongoing conflict with Iran and rising energy costs.
• Since hitting a low of 6,316.91 on March 30 amid war-related tensions and soaring oil prices, the index has rebounded sharply, driven largely by gains in the "Magnificent 7" tech stocks including Apple, Microsoft, and Amazon.
• The Nasdaq Composite also hit a record high, reflecting strong momentum in large tech firms, even as crude oil prices have surged nearly 60% this year, causing gasoline prices to rise over 37%.
• Comments from former President Trump suggesting the war with Iran is "close to over" contributed to investor optimism, though the conflict remains unresolved with a ceasefire in place until next Wednesday.
• Despite the market rally, economists and analysts urge caution due to high energy costs slowing global growth, with the IMF lowering its 2026 global growth forecast to 3.1% and raising inflation expectations.