TLDR
- The S&P 500 and Nasdaq hit fresh all-time highs Thursday after reports of a U.S.-Iran ceasefire deal
- The VIX volatility index dropped to its lowest level since January 23, falling below 16
- Snowflake shares surged around 35% after a strong earnings beat and raised guidance
- April PCE inflation came in at 3.8% annually, with a cooler monthly reading of 0.4%
- President Trump has not yet given final approval to the reported 60-day ceasefire agreement
The S&P 500 rose Thursday and reached a new record high after reports emerged that U.S. and Iranian negotiators agreed on a 60-day memorandum of understanding to extend the ceasefire.
The index gained 0.4% to 0.5% during the session, pushing above the 7,500 level and reaching an intraday peak of 7,556.52. The Nasdaq Composite also gained 0.6%, with both indexes hitting fresh all-time highs. The Dow Jones Industrial Average was little changed, up around 17 points.
The report, cited by Axios and sourced from two U.S. officials and a regional source, said the agreement also covers further negotiations on Iran’s nuclear program. However, President Donald Trump has not yet given the deal his final approval.
The White House later called a separate report about a memorandum of understanding “a complete fabrication,” keeping traders cautious.
VIX Falls to Four-Month Low as Volatility Eases
Market volatility dropped sharply on Thursday. The CBOE Volatility Index fell below the key 16 level, touching an intraday low of 15.73. That is its lowest reading since January 23.
The drop in the VIX reflected improved investor sentiment around the geopolitical situation. Traders rotated into risk assets as concerns over the U.S.-Iran conflict eased.
David Wagner, head of equities at Aptus Capital Advisors, said the market had been expecting some kind of memorandum of understanding. He added that discretionary stocks tend to move higher as a first reaction to this type of news.
Oil prices also pulled back from their highs after the ceasefire report. West Texas Intermediate crude traded above $89 a barrel, while Brent futures were around $95 a barrel. Both had moved higher earlier after Iran’s Revolutionary Guard said it targeted a U.S. airbase.
Snowflake Surges 35% on Earnings Beat
Snowflake was a standout performer on Thursday. Its shares jumped around 35% after the cloud data platform beat first-quarter earnings and revenue expectations, then issued stronger-than-expected guidance for its fiscal second quarter.
The company also announced a plan to spend $6 billion on Amazon Web Services over the next five years, which added to the positive reaction from investors.
On the inflation front, the April Personal Consumption Expenditures price index rose 0.4% for the month. The 12-month rate came in at 3.8%. The monthly figure came in cooler than the 0.5% economists had expected.
The annual rate remains above the Federal Reserve’s 2% target, but the softer monthly reading gave traders some hope that pricing pressure may be starting to ease.
Secretary of State Marco Rubio said earlier this week that Iran talks had made progress and that the administration prefers a negotiated diplomatic path.
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