U.S. stocks extended their gains on Thursday as investors remained optimistic that the two-week ceasefire between the United States and Iran would not fall apart and further talks would help reach a peace deal. All three major indexes ended in positive territory.
The Dow Jones Industrial Average (DJI) gained 0.6% or 275.88 points, to close at 48,185.80 points.
The S&P 500 jumped 0.6%, or 41.85 points, to end at 6,824.66 points. Consumer discretionary stocks were the biggest gainers, while energy stocks were the worst performers.
The Consumer Discretionary Select Sector SPDR (XLI) gained 1.7%. The Industrials Select Sector SPDR (XLI) gained 1%. The Energy Select Sector SPDR (XLE) declined 1.2%. Eight out of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq added 0.8%, or 187.42 points, to finish at 22,822.42 points.
The fear gauge, CBOE Volatility Index (VIX), was down 7.37% to 19.49. Advancers outnumbered decliners on the NYSE by a 1.99-to-1 ratio. On the Nasdaq, a 1.31-1 ratio favored advancing issues. A total of 17 billion shares were traded on Thursday, lower than the last 20-session average of 19.38 billion.
On the NYSE, there were 254 new 52-week highs and 83 new lows. On the Nasdaq, there were 2,651 new highs and 2,029 new lows. On the S&P 500, there were 44 new 52-week highs and 19 new lows.
Stocks struggled initially on Thursday, and oil prices soared again. West Texas Intermediate futures jumped over 3% and settled at $97.87 per barrel after surging past $100 per barrel at one point.
Oil prices stabilized after Israel said that it was ready for direct negotiations with Lebanon after carrying out attacks on the country earlier in the day. Iran had strictly condemned the attack on Lebanon, calling it a violation of the ongoing ceasefire. Israel’s decision to negotiate with Lebanon helped the S&P 500 rebound.
Retail and chip stocks were the outperformers as the broader market gained. Shares of Walmart Inc. (WMT) rose 1.5%, while Broadcom Inc. (AVGO) gained 1.2%. Broadcom sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Also, shares of Meta Platforms, Inc. (META) rose 2.6% after the social media giant introduced its new AI model developed by Meta Superintelligence Labs.
Thursday’s gains follow a solid session on Wednesday that saw stocks rally after President Donald Trump announced a two-week ceasefire with Iran and the reopening of the Strait of Hormuz as part of the deal.
