Wall Street extended its remarkable run Thursday, with the Dow Jones Industrial Average closing at a fresh all-time high as investors priced in progress toward a diplomatic resolution between the United States and Iran. The S&P 500 is now on course for its eighth straight weekly gain, while the Nasdaq Composite is poised for its seventh weekly advance in the past eight sessions.
The Dow Jones Industrial Average surged 276.31 points to finish at 50,285.66, notching a record close that underscores the blue-chip index’s resilience amid geopolitical uncertainty. The S&P 500 added 12.75 points to 7,445.72, while the Nasdaq Composite edged up 22.74 to 26,293.10. The Russell 2000 outpaced its larger-cap peers with a robust 0.93% gain, closing at 2,843.45.
The rally has been nothing short of extraordinary. The S&P 500’s streak of consecutive weekly gains now stands at eight, its longest such run in years. The Nasdaq has posted gains in seven of the past eight weeks, reflecting sustained confidence in technology and growth-oriented sectors despite lingering macroeconomic concerns.
The primary catalyst for Thursday’s advance was renewed optimism surrounding U.S.-Iran diplomacy. President Trump indicated he is willing to wait “a few days” for Tehran’s response to a U.S. peace proposal, signaling patience rather than escalation. Reports that Iran is actively reviewing the proposal have fueled hopes that the conflict in the Middle East may be headed toward de-escalation.
The prospect of a diplomatic breakthrough has had a pronounced effect on energy markets. West Texas Intermediate crude futures jumped $2.36 to $98.71 per barrel, a 2.45% advance that reversed three consecutive sessions of declines. Brent crude similarly rallied approximately 2% in early Asian trading. The moves came even as Reuters reported that Iran’s supreme leader ordered enriched uranium to remain in the country, a potential complicating factor that investors have largely dismissed for now.
A major policy announcement from Washington sent quantum computing stocks soaring. The National Institute of Standards and Technology disclosed plans to award $2 billion in grants to nine firms in the sector, with the U.S. government taking minority, non-controlling equity stakes in each recipient. IBM emerged as the largest beneficiary, securing $1 billion in funding. Shares of IBM responded with a 12% surge on Thursday.
The quantum rally rippled through related names. Rigetti Computing jumped 30.57%, D-Wave Quantum surged 33.37%, and Infleqtion rallied 31.48%. The sector’s explosive gains highlighted investor appetite for frontier technologies backed by federal support.
Not all stocks participated in the broad advance. Intuit cratered 20.02% after reporting quarterly results that fell short of Wall Street expectations, wiping out tens of billions in market value. Walmart slid 7.27% following its own disappointing guidance, dragging consumer staples and defensive sectors lower.
The 10-year Treasury yield ticked up one basis point to 4.59%, reflecting modest pressure on fixed-income markets as equities advanced. Gold, typically a haven during geopolitical stress, slipped $20.80 to $4,521.70 per ounce, suggesting that investors are rotating out of defensive positions as risk appetite improves. The VIX, Wall Street’s fear gauge, held steady near 16.77, indicating subdued volatility expectations.
Looking ahead, traders will closely monitor Iran’s formal response to the U.S. proposal, with Memorial Day weekend closures approaching. The S&P 500’s eight-week winning streak is already one for the history books. Whether it extends to nine will depend on whether geopolitical hopes translate into concrete diplomatic outcomes.
