U.S. stocks advanced again on Thursday, buoyed by optimism over a potential extension of the U.S.-Iran ceasefire and signs of improvement in the labor market. The S&P 500 Index closed 0.3% higher, setting another record high, with the energy and real estate sectors leading the gains. The index has recorded only one daily decline since the beginning of April and has risen more than 7% for the month. The Nasdaq 100 Index climbed 0.5%, also reaching a new record, extending its winning streak to 12 consecutive days—the longest since 2017. Earnings reports from the financial sector, released intensively this week, continued to show mixed results. Bank of New York Mellon saw its stock rise after net interest income exceeded Wall Street expectations, while Charles Schwab declined due to revenue falling short of forecasts. Earlier releases of producer prices and import price increases, which were lower than expected, boosted market sentiment. Additionally, initial jobless claims for the week ending April 11 came in below economists' predictions, providing further support for equities. “The rapid rebound of the S&P 500 from its late-March low is impressive, but has it risen too far, too fast?” wrote Tom Essaye, founder of Sevens Report, on Thursday, noting declining trading volume. Kristian Kerr, macro strategy head at LPL Financial, also highlighted the low trading volume, pointing out that the S&P 500's volume has been below its yearly average over the past five trading sessions. “This suggests the rally is being driven more by short covering and passive positioning adjustments than by new capital inflows,” he said. PepsiCo's stock rose after reporting better-than-expected sales and profits. In contrast, Abbott Laboratories declined after lowering its full-year profit outlook. Taiwan Semiconductor Manufacturing Co. ADRs fell, despite the company forecasting over 30% sales growth in U.S. dollar terms by 2026. At the close, the S&P 500 was up 0.3% to 7,041.28 points. The Dow Jones Industrial Average rose 0.2% to 48,578.72 points. The Nasdaq Composite Index gained 0.4% to 24,102.7 points. The Nasdaq 100 Index advanced 0.5% to 26,333 points. The Russell 2000 Index increased 0.2% to 2,719.602 points.
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