Optimism on Wall Street was buoyed by expectations that the U.S. and Iran might reach an agreement to transform a fragile ceasefire into lasting peace, propelling U.S. stock markets toward their longest weekly winning streak since December 2023.

As of 10:15 a.m. New York time, the S&P 500 index rose 0.4%, while the Nasdaq 100 and the Dow Jones Industrial Average gained 0.6%.

After rebounding approximately 18% from war-induced lows, the S&P 500 is on track to achieve its eighth consecutive weekly advance. U.S. crude oil prices continued to experience significant volatility as traders attempted to gauge when energy shipments through the critical Strait of Hormuz might fully resume.

The conflict has persisted for nearly three months, with Tehran considering the latest proposal submitted by the United States. Pakistan indicated that its Army Chief is heading to Tehran, suggesting progress in ceasefire negotiations. Concurrently, Reuters reported that a Qatari negotiation delegation, coordinated with the U.S., has arrived in Tehran to work toward securing a deal.

Investors are overlooking broader macroeconomic headwinds and instead responding positively to encouraging rhetoric regarding the prospects for peace. Craig Johnson of Piper Sandler noted that this has become a favorable factor for the stock market.

"The equity market is exhibiting a 'hope-driven' rally," he stated.