The S&P 500 edged higher on Thursday as oil prices fell for another day, buoyed by hopes that the U.S. and Iran were closing in on an agreement to end the war.
The broad market index rose 0.1%, as did the Nasdaq Composite. The Dow Jones Industrial Average added 174 points, or 0.4%.
More strong quarterly results helped sentiment as well. Shares of DoorDash popped 8% after the food delivery giant issued rosy guidance for orders in its second quarter. Meanwhile, Fortinet climbed 19% after lifting its full-year billings guidance.
Stocks posted strong gains in the previous session, with the S&P 500 and Nasdaq posting record highs. The Dow also popped more than 600 points.
Stocks moved higher and oil prices cooled after Axios reported, citing sources, that the U.S. and Iran are nearing a deal to end the war. Specifically, two U.S. officials and two other sources briefed on the issue told the outlet that the White House believes it is nearing a one-page, 14-point memorandum of understanding to not only end the war, but also establish a framework for more detailed nuclear talks.
An Iranian foreign ministry spokesperson said to CNBC on Wednesday that Iran was evaluating a U.S. proposal for a resolution.
Outside of these hopes for easing Middle East tensions, a strong earnings season has also boosted stocks. Samantha McLemore, Patient Capital Management founder, expects the rally to keep ripping higher from here.
“It’s a secular bull market,” she said on CNBC’s “Closing Bell” on Wednesday afternoon. “People have been talking about this — are we in a bubble, has it gone too far — for over a year now, so I think that’s kept a lid on valuations, and we’ve mostly just seen the moves track the earnings.”
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