S&P 500 Extends Streak as Ceasefire Hopes Steady Markets

Stocks finished higher for a seventh straight session as investors looked past early weakness and focused on signs that the US-Iran ceasefire may hold, with additional support from news that Israel agreed to direct talks with Lebanon. Oil remained volatile but gave back part of its sharp intraday advance, helping calm broader risk sentiment, while rates and the dollar were little changed as markets balanced geopolitical relief against still-sticky inflation and a slowing but stable US economy.

Key Headlines & Market Movers:

• Geopolitics Still In Focus: The market’s direction was still tied primarily to Middle East developments, with investors encouraged by reports of a two-week ceasefire between the US and Iran and by Israel’s willingness to open direct negotiations with Lebanon. That combination helped equities push higher and reduced some of the pressure from surging crude, though trading suggested investors are still treating the situation as fragile rather than resolved.

Inflation and Growth Data: Economic data painted a mixed picture, with growth in late 2025 revised lower and consumer spending still soft, while inflation measures remained elevated and are expected to face fresh pressure from higher energy prices. At the same time, jobless claims data pointed to a labor market that is holding up, reinforcing the view that the Fed can stay patient even as markets brace for a hotter CPI reading.

• Corporate Stories Mixed: Leadership under the surface was uneven, with software shares lagging even as several large-cap technology names advanced and Amazon outperformed among the mega-caps. Elsewhere, investors reacted to a wide range of company-specific developments, including a large new AI infrastructure deal involving CoreWeave and Meta, Intel’s data-center chip win with Google, stress in private credit after Carlyle capped redemptions, and energy-sector production headwinds tied to the regional conflict.

S&P 500 Sector Performance

Looking Ahead

Friday’s CPI report is the next key test, because it should offer a clearer read on whether the recent energy shock is beginning to feed more directly into consumer prices. Markets will also stay highly sensitive to any change in ceasefire conditions, shipping through the Strait of Hormuz, and the tone of regional negotiations, with those headlines likely to matter as much as the economic data for near-term risk appetite.

Looking Ahead

Friday’s CPI report is the next key test, because it should offer a clearer read on whether the recent energy shock is beginning to feed more directly into consumer prices. Markets will also stay highly sensitive to any change in ceasefire conditions, shipping through the Strait of Hormuz, and the tone of regional negotiations, with those headlines likely to matter as much as the economic data for near-term risk appetite.

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