US stocks traded near record levels on Wednesday as investors reacted to signs that Washington and Tehran could return to talks. Earnings also supported sentiment, with major banks posting strong trading results and technology shares extending their recent rebound. Oil stayed elevated, however, which kept inflation and interest-rate concerns in focus.

Stocks Climb as Ceasefire Hopes Support Sentiment

The S&P 500 moved higher and traded close to its late-January peak, while the NASDAQ also advanced as technology shares continued to recover. The Dow, by contrast, slipped modestly, showing that gains were concentrated in selected parts of the market rather than spread evenly across all sectors.

Markets found support from reports that the United States and Iran may hold another round of talks soon. President Donald Trump said discussions could resume “over the next two days” and added that the war is “close to over.” Those remarks helped steady risk appetite after weeks of volatility tied to the conflict.

The rebound has been notable. The S&P 500 has erased losses linked to the early phase of the war, while the NASDAQ has posted a long winning streak as chip and software names regained momentum. Even so, crude prices remain well above pre-war levels, and that has kept investors focused on inflation risks and the path of monetary policy.

Bank Earnings Add Support as Investors Watch Guidance

Corporate earnings gave markets another reason to hold firm. Bank of America shares rose after reporting first-quarter profit growth, while Morgan Stanley gained after posting a jump in quarterly profit. Trading desks at both firms benefited from volatile market conditions, and the updates suggested that client activity remained healthy.

In addition, executives pointed to stable consumer spending and continued activity in deal pipelines. This helped support financial shares, even as investors continued to assess whether the war and higher energy prices could weaken growth later in the year.

Attention is now shifting beyond headline profit figures. As earnings season advances, investors are watching for signs of pressure on margins, demand, and business spending. Strong results have kept the market near its highs for now, yet traders still want firmer evidence that diplomacy will move forward and ease pressure on oil markets.

Technology Shares Lead While Commodities and Yields Stay Firm

Technology remained one of the strongest areas of the market. Broadcom rose after Meta extended its custom chip partnership, while software shares also advanced as investors returned to names that had fallen earlier in the year. Oracle, Microsoft, Palantir, Datadog, ServiceNow, and Salesforce were among the companies that added to the sector’s rebound.

Robinhood also moved higher after US regulators approved changes tied to restrictions on day trading by smaller investors. The change lifted sentiment around retail trading platforms, and Webull rose on the same development.

Outside equities, the broader market remained mixed. West Texas Intermediate crude climbed above $92 a barrel, while Brent traded near $95. Oil stayed supported by supply concerns tied to the Strait of Hormuz, where the conflict has disrupted a large share of global crude flows. At the same time, Treasury yields rose, with the 10-year yield near 4.28%, showing that bond investors were still pricing in inflation risk.

Gold slipped, and the dollar was little changed. In digital assets, Bitcoin held near $74,168, while Ether rose above $2,340. Together, those moves suggested that investors were not shifting heavily into traditional defensive assets during the session.

Corporate Updates

• Bank of America traders delivered the unit’s highest quarterly revenue in more than a decade.

• Jane Street Group invests an additional $1 billion in CoreWeave and plans to spend about $6 billion on the company’s technology services.

• ASML raised its full-year sales forecast as AI spending continued to support chip equipment demand.

• Stellantis discussed reviving a partnership with Dongfeng Motor for joint vehicle production in Europe and China.

• Hermès reported slower sales growth as the Middle East conflict disrupted luxury demand.

• Snap rose after announcing plans to cut about 1,000 jobs.

• Allbirds surged after outlining a pivot toward AI infrastructure.

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Market Breadth Stays Mixed Despite Index Gains

Despite the rise in major indexes, market breadth stayed uneven. More stocks fell than rose on both the NYSE and the NASDAQ, and seven of the 11 S&P 500 sectors traded lower. Materials and consumer staples were among the weakest groups, while information technology led gains.

This split indicated that investors were rotating into selected growth and earnings-driven names rather than lifting the whole market. Meanwhile, the CBOE Volatility Index eased, reflecting calmer trading conditions, though uncertainty did not disappear.

Trump’s latest remarks on Federal Reserve Chair Jerome Powell also added another policy concern for investors to monitor. Trump said he would fire Powell if he remains at the central bank after a successor is confirmed, and he also called for the probe into the Fed headquarters renovation to continue. Markets ended the session balancing hopes for diplomatic progress with fresh attention on political pressure surrounding the Federal Reserve.