SP 500 and Nasdaq Composite close at fresh records as traders look past Iran war fears The SP 500
and Nasdaq Composite
rose to new all-time highs on Wednesday, building on the weeks strong gains as investors remained hopeful about the Iran war potentially ending soon.

The broad market index gained 0.8%. The Nasdaq Composite
advanced 1.59%, while the Dow Jones Industrial Average
shed 72 points, or 0.15%. If the gains hold, it would mark the SP 500s 10th positive session in 11 and extend the technology-heavy Nasdaqs winning streak to 11.

Stocks have been riding high this week on the possibility that a peace deal between the U.S. and Iran could materialize. The SP 500, which fully recovered from its Iran war losses on Monday, has risen 3% this week. The Nasdaq and Dow, meanwhile, have added more than 4% and 1% week to date.The setup coming into [the war] was that market participants had de-risked to a degree in anticipation that maybe things might get bad, and then as that seems like its maybe less of a likelihood, theyre needing to buy, said Thomas Martin, senior portfolio manager at Globalt Investments. People dont want to miss out on an up market.

President Donald Trump offered more hope to investors that the war may not last much longer, saying in a interview with Fox Business Wednesday that the Iran war is very close to over and claiming once again that Iran wants to make a deal very badly.

A second round of negotiations between Washington and Tehran is under discussion, a White House official told CNBC Tuesday. Nothing has been officially scheduled yet, noted the official, who asked not to be named to discuss the administrations internal plans.

Is there going to be a deal that will allow the Strait of Hormuz to open up and there to be less rhetoric on stopping the flow of goods? The market seems to be saying that it thinks there will be, Martin said.

Broadcom
was a key winner of Wednesdays session, rising 3%. This comes on the heels of Meta Platforms extending its partnership with Broadcom to deploy custom chips using the chipmakers technology.Nasdaqs rally drives fastest momentum reversal in decades

The NASDAQ Composite
has surged into overbought territory Wednesday, with its RSI rising above 70 just 11 trading days after the index closed oversold on March 30. What stands out is the speed of the reversal: moves from oversold to overbought typically take several weeks or longer. At just 11 trading days, this is the fastest such swing in the data going back to the early 1980s.

RSI, or relative strength index, is a widely used technical indicator that measures the speed and magnitude of recent price moves, with readings below 30 typically considered oversold and above 70 overbought. Analysts sometimes use RSI to identify potential reversal points.

The move has coincided with a sharp 11-day rally in the index, its first such rally since November 2021. The index is up 15% over that period, its best 15-day period since March 2022.