Stocks extend record rally as futures rise, oil retreats on Iran hopes

Wall Street kept climbing on Thursday as the rally spread across futures, stocks and crude markets, with investors again treating lower oil prices and stronger corporate earnings as the clearest signals that the record run can last.

In morning trade, the S&P 500 was up 0.1% and the Nasdaq Composite gained 0.4%, after both indexes had already touched fresh intraday highs and closed at records in the previous session. The Dow Jones Industrial Average slipped 74 points, a reminder that the advance has remained uneven even as the broad tape keeps setting new marks. West Texas Intermediate crude fell 4% to above $91 a barrel, while Brent slipped 3% to above $97 a barrel.

The biggest swing factor remained the Middle East. Axios reported, citing sources, that the White House believed it was nearing a one-page, 14-point memorandum of understanding with Iran that could help end the war and set up a framework for fuller nuclear talks. CNBC also reported that an Iranian foreign ministry spokesperson said Iran was evaluating a U.S. proposal for a resolution. Traders took those signals as another reason to price in a possible easing of tensions around the Strait of Hormuz, one of the world’s most important oil chokepoints.

That matters for stocks because falling crude can ease inflation pressure and support the case for easier monetary policy later this year. It also helps explain why the market has been willing to ignore the war scare that briefly threatened to derail the rally. As oil extended its retreat, investors doubled down on sectors tied to growth and artificial intelligence, rather than rotating into the defensive pockets that usually lead when geopolitics worsens.

Earnings have also done heavy lifting. DoorDash shares jumped 8% after the company issued upbeat guidance for second-quarter orders, and Fortinet surged 19% after lifting its full-year billings outlook. Those moves reinforced the idea that the market’s gains are not being driven only by speculation. As Samantha McLemore of Patient Capital Management said on CNBC, “It’s a secular bull market.” Paul Tudor Jones has also argued that the AI-fueled run may have another year or two to go.

The latest move builds on earlier records this week, including May 1, when Apple’s 3.2% gain helped push the S&P 500 and Nasdaq to fresh closing highs. But the practical question is whether the record-setting indexes are translating into broader household gains. For investors with heavy retirement and brokerage exposure, the rally is visible in account balances. For families dealing with sticky prices, uneven confidence and only modest wage breathing room, the wealth effect remains far less even.