S&P 500 and Dow Hit Record Highs as AI Trade Returns, Oil Falls on Iran Talks

Global equity markets closed at record levels, driven by renewed investor appetite for artificial intelligence stocks and a drop in oil prices tied to U.S.-Iran negotiation signals.

The S&P 500 rose 1.8 percent to 7,737, surpassing its previous all-time high. The Dow Jones Industrial Average gained 1.7 percent to close at a record 54,086, its first record close in nearly a month. The Nasdaq added 2.6 percent to reach 26,585.

Technology stocks led the advance. Nvidia rose 2.6 percent to $211.94. Apple gained 2.0 percent to $309.38. Microsoft added 1.1 percent to $492.81, and Alphabet climbed 1.1 percent to $377.65. Palantir was also cited by analysts as a contributor to the rally, reflecting sustained AI-sector profitability.

Oil prices declined after President Trump said an Iran deal is "over," then separately said talks were under way. The conflicting signals weighed on crude by reducing the geopolitical risk premium typically embedded in oil prices during Middle East tensions. Prices rebounded on some sessions, reflecting continued uncertainty over the status of negotiations.

A separate error in the original draft described the conflict as "the U.S.-Israel war on Iran"—the nature of that conflict should be clarified before publication.

The U.S. dollar weakened alongside oil, a move consistent with reduced global risk aversion and increased appetite for equities.

European stocks also rose as global investors assessed the evolving diplomatic picture.

The Russell 2000, which tracks smaller U.S. companies, gained 1.8 percent to 2,037—broad participation that points to a risk-on posture across market segments, not just large-cap tech.

Global equity markets closed at record levels, driven by renewed investor appetite for artificial intelligence stocks and a drop in oil prices tied to U.S.-Iran negotiation signals.

A separate error in the original draft described the conflict as "the U.S.-Israel war on Iran"—the nature of that conflict should be clarified before publication.

The U.S. dollar weakened alongside oil, a move consistent with reduced global risk aversion and increased appetite for equities.

European stocks also rose as global investors assessed the evolving diplomatic picture.

The Russell 2000, which tracks smaller U.S. companies, gained 1.8 percent to 2,037—broad participation that points to a risk-on posture across market segments, not just large-cap tech.