Key Highlights
- Major U.S. equity benchmarks achieved new all-time peaks Thursday following news of a potential U.S.-Iran diplomatic agreement
- Fear gauge VIX plummeted to its most subdued reading since late January, dipping beneath the 16 threshold
- Cloud data platform Snowflake skyrocketed approximately 35% following robust quarterly results and upgraded forecasts
- April’s PCE inflation metric registered 3.8% on a year-over-year basis, while the monthly increase of 0.4% came in below projections
- Final authorization from President Trump remains pending for the purported 60-day truce framework
U.S. equity markets advanced Thursday, with the S&P 500 establishing a fresh record high following news that American and Iranian representatives reached consensus on a 60-day framework to prolong the ceasefire arrangement.
The benchmark index climbed between 0.4% and 0.5% throughout trading, breaking through the 7,500 threshold and touching an intraday high of 7,556.52. The tech-heavy Nasdaq Composite advanced 0.6%, with both measures posting unprecedented closing levels. Meanwhile, the Dow Jones Industrial Average showed minimal movement, edging up approximately 17 points.
According to reporting from Axios, citing two American officials and a regional insider, the framework encompasses provisions for continued discussions regarding Iran’s atomic energy initiatives. Nevertheless, President Donald Trump hasn’t yet provided his ultimate authorization for the arrangement.
The White House subsequently dismissed a separate account describing a memorandum of understanding as “a complete fabrication,” prompting continued wariness among market participants.
Fear Gauge Tumbles to Four-Month Low Amid Diminishing Uncertainty
Market turbulence declined significantly during Thursday’s session. The CBOE Volatility Index fell beneath the critical 16 threshold, reaching an intraday minimum of 15.73. This represents the gauge’s most subdued level since January 23.
The VIX’s descent signaled enhanced optimism among investors regarding geopolitical developments. Market participants shifted capital toward riskier assets as anxieties surrounding U.S.-Iran hostilities diminished.
David Wagner, head of equities at Aptus Capital Advisors, noted the market had been anticipating some form of memorandum of understanding. He observed that consumer discretionary equities typically rally as an initial response to such developments.
Oil prices also retreated from elevated levels following the ceasefire announcement. West Texas Intermediate crude traded north of $89 per barrel, while Brent futures hovered around $95 per barrel. Both benchmarks had climbed earlier after Iran’s Revolutionary Guard announced it had struck a U.S. military installation.
Cloud Platform Snowflake Rockets 35% Following Strong Quarterly Performance
Snowflake emerged as Thursday’s top performer. Shares of the cloud data company skyrocketed roughly 35% after delivering first-quarter earnings and revenue that exceeded Wall Street projections, coupled with upgraded guidance for the upcoming fiscal quarter.
The enterprise also unveiled plans to allocate $6 billion toward Amazon Web Services throughout the next five years, further fueling investor enthusiasm.
Regarding inflation data, the April Personal Consumption Expenditures price index increased 0.4% on a monthly basis. The year-over-year rate settled at 3.8%. The monthly figure undershot the 0.5% consensus estimate from economists.
While the annual rate continues hovering above the Federal Reserve’s 2% objective, the more moderate monthly increase offered traders encouragement that inflationary pressures might be beginning to moderate.
Secretary of State Marco Rubio indicated earlier this week that negotiations with Iran had advanced and that the administration favors a diplomatic resolution through dialogue.
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