Stock futures pause after S&P 500, Nasdaq hit record highs

Stock futures were little changed after Wall Street’s latest breakout, a sign that traders were pausing to judge whether Wednesday’s record run had enough breadth to last. The S&P 500 climbed 0.8% to 7,022.21, its highest close ever, while the Nasdaq Composite rose 1.6% to 24,014.43. The Dow Jones Industrial Average slipped 0.16% to 48,460.55.

The move capped a sharp recovery from March’s pullback. The S&P 500’s previous record close, 6,978.60 on January 27, had looked out of reach after the index fell nearly 10% below that level in late March. It then rallied more than 10%, carrying the benchmark back into uncharted territory and leaving futures flat as investors reassessed how much good news was already priced in.

Geopolitics remained a major driver of the rebound. Traders had been looking past war fears and betting that tensions between the United States and Iran could ease. White House press secretary Karoline Leavitt said discussions about a second round of talks with Iran were ongoing and productive, even as the U.S. Treasury Department targeted Iran’s oil transportation infrastructure with sanctions on more than two dozen individuals, companies and vessels. That mix of diplomacy and pressure helped steady sentiment on a day when the market was already favoring risk.

Earnings also gave the rally a foundation beyond headlines from Washington and the Middle East. Reuters said first-quarter results helped support the advance, with Bank of America and Morgan Stanley among the financial stocks that lifted the market. The breadth of the move mattered: when banks join the rally alongside megacap technology shares, investors tend to see a more durable advance rather than a narrow burst of momentum.

The market’s fear gauge underscored that shift in tone. CBS News reported that the CBOE volatility index fell to its lowest level since February 26 during the session, suggesting traders were rushing less to hedge downside risk. That calm, however, can cut both ways. After a record-setting session for the S&P 500 and Nasdaq, futures were signaling a market waiting for the next test, whether from earnings, economic data or another turn in geopolitics.