US stocks extended their gains, driving both the S&P 500 and Nasdaq 100 indices to new all-time highs. Investors, optimistic about potential US-Iran ceasefire developments and robust corporate earnings, poured funds into the equity markets.

The S&P 500 index climbed 0.8%, setting a new intraday record and surpassing its previous peak of 7,002.28 points from late January. The financial and technology sectors were the primary drivers of this advance. The Nasdaq 100 index recorded its longest winning streak since 2019, rising 1.4% to also achieve a fresh intraday high.

Signs of easing tensions in the Middle East are boosting market risk appetite, while falling oil prices are helping to alleviate inflation concerns, a chief technical strategist commented regarding the Nasdaq 100's sustained upward trend.

This rally continues a strong reversal for the stock market. A sell-off late last month had driven the S&P 500 down more than 9% from its peak. The Nasdaq 100 also entered a technical correction during the war period, falling 12% from its record high. This decline was influenced by a surge in oil prices triggered by the Iran conflict. The oil shock threatened economic growth and raised the potential for higher inflation, sparking concerns reminiscent of the stagflation era of the 1970s.

However, indications of reduced Middle East tensions, coupled with optimism surrounding artificial intelligence technology and corporate profits, have prompted previously skeptical investors to abandon their cautious stance.

It is difficult for investors to ignore the fear of missing out, a chief market strategist noted. This reinforces the buy-the-dip strategy that has proven effective over the past few years.