S&P 500 gets close to all-time-high as investors stay optimistic about Middle East developments

[The New York Stock Exchange on the Wall street sign]
Dmitry Vinogradov

Wall Street's major averages advanced on Wednesday as investors awaited good news on the U.S.-Iran conflict front while parsing more bank and financial earnings.

The benchmark S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) is tightly close to its all-time high of 7,002.28 and was last +0.2%.

The heavy-tech Nasdaq Composite (COMP:IND [https://seekingalpha.com/symbol/COMP:IND]) was last +0.5%, aided by Broadcom (AVGO [https://seekingalpha.com/symbol/AVGO]), +3.9%, as it entered into a three-year partnership [https://seekingalpha.com/news/4575011-broadcom-edges-up-after-inking-three-year-deal-with-meta-to-help-develop-ai-chips] with Meta Platforms (META) to develop its AI chips and deploy them into data centers.

Nonetheless, the Dow Jones Industrial Average (DJI [https://seekingalpha.com/symbol/DJI]) was -0.2%.

Over in the bond market, the benchmark 10-year Treasury yield (US10Y [https://seekingalpha.com/symbol/US10Y#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) was 3 basis points higher at 4.28%, while the 2-year Treasury yield (US2Y [https://seekingalpha.com/symbol/US2Y#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) was unchanged at 3.76%.

“The 2-year Treasury yield (US2Y) fell below 3.75% today (the upper bound of the fed funds rate) for the first time since March 17th as the likelihood of a rate cut by year-end has increased,” said Collin Martin, head of fixed income research and strategy at Schwab Research. “The outlook is highly uncertain, and there's a lot of time between now and the December meeting. For now, we expect the Fed to remain on hold for the next several meetings.”

On geopolitics, President Donald Trump hinted that negotiations with Iran could take place “over the next two days [https://seekingalpha.com/news/4574855-trump-hints-at-imminent-iran-talks-in-pakistan#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]” in Pakistan. This was after the U.S. announced a move towards a naval blockade [https://seekingalpha.com/news/4574457-trump-warns-iranian-ships-as-hormuz-blockade-gets-underway#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] of the Strait of Hormuz.

Crude oil futures (CL1:COM [https://seekingalpha.com/symbol/CL1:COM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) were lower at $91.4, while Brent (CO1:COM [https://seekingalpha.com/symbol/CO1:COM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) was at $94.9 per barrel.

On the economy, U.S. export prices climbed [https://seekingalpha.com/news/4575175-us-import-prices-rise-less-than-expected-in-march-export-prices-roughly-in-line] faster than U.S. import prices in March, according to the Bureau of Labor Statistics. Also, the Empire State Manufacturing Index rose [https://seekingalpha.com/news/4575170-empire-state-manufacturing-index-unexpectedly-shows-positive-reading-in-april] 11 points to 11.0 in April, vs. the -2.0 consensus, the Federal Reserve Bank of New York reported.

MORE ON S&P 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, ETC.

* Against The Odds: U.S. Is Relatively Resilient Despite Global Turmoil [https://seekingalpha.com/article/4890883-us-relatively-resilient-despite-global-turmoil]
* Is The Economy Better Off Today Than Before The War Started? [https://seekingalpha.com/article/4890845-is-economy-better-off-today-than-before-the-war-started]
* The Greenback Is Poised To Snap Losing Streak [https://seekingalpha.com/article/4890835-the-greenback-is-poised-to-snap-losing-streak]
* U.S. Federal Reserve may deliver one cut this year, former chair Yellen says [https://seekingalpha.com/news/4575033-us-federal-reserve-may-deliver-one-cut-this-year-former-chair-yellen-says]
* 3 things to look out for on Wednesday [https://seekingalpha.com/news/4574981-3-things-to-look-out-for-on-wednesday]