US sharemarkets delivered another strong session on Wednesday, with the S&P 500 and Nasdaq Composite closing at record highs as investors continued to price in the prospect of an end to the Iran war. The S&P 500 rose 0.80% to 7,022.95, while the Nasdaq Composite gained 1.59% to 24,016.02, extending its winning streak to 11 sessions. The Dow Jones Industrial Average slipped 72.27 points, or 0.15%, to 48,463.72.
The rally builds on a strong week for equities, with the S&P 500 up around 3% week to date, while the Nasdaq has gained nearly 5% and the Dow more than 1%. The S&P 500 has now posted gains in 10 of the past 11 sessions.
Markets have been supported by expectations that negotiations between the United States and Iran could lead to a resolution. Donald Trump said the war is “very close to over” and reiterated that Iran is seeking a deal, while US officials confirmed that a second round of talks is under discussion.
Technology stocks again led gains, with Broadcom rising 4% following news of an expanded partnership with Meta Platforms. The continued strength in large-cap technology has underpinned the broader market’s advance.
Earnings season is in focus, with Bank of America and Morgan Stanley reporting better-than-expected results, while upcoming releases from Netflix, PepsiCo, TSMC and Alcoa are due later this week.
Oil and macro
Oil prices edged higher, with crude settling near recent levels as markets balanced improving sentiment with ongoing supply considerations. Brent crude traded around US$91–US$92 a barrel.
The potential reopening of the Strait of Hormuz remains a key factor for energy markets. Investors continue to monitor developments in negotiations, as any resolution could ease supply concerns and reduce volatility in oil prices.
Australian Market Outlook
Australian shares are set to open flat, with S&P/ASX 200 futures down 3 points, or 0.03%, to 9,018, despite strong gains on Wall Street.
Locally, attention will turn to corporate and economic updates. Santos is holding its AGM, while data on consumer inflation expectations and unemployment is due.
