Berliner Boersenzeitung - S&P 500, Nasdaq end at records as markets bet on US-Iran accord

After a mixed day on European stock markets, both the broad-based S&P 500 and tech-rich Nasdaq Composite Index powered to all-time highs as US markets continued rising despite the Iran conflict that has spiked oil prices.

"Markets are growing increasingly confident that tensions in the Middle East may be heading toward some form of resolution," said Fawad Razaqzada, an analyst at FOREX.com.

"That said, it still feels a touch premature to be pricing in a smooth resolution," he added.

Talks involving US Vice President JD Vance ended last weekend without an accord.

White House Press Secretary Karoline Leavitt told reporters further US-Iran talks "would very likely" be held in Pakistan, saying "we feel good about the prospects of a deal."

On the Iranian side, a foreign ministry spokesman said "several messages" had been exchanged via Islamabad since talks wrapped up on Sunday.

But Iran's military also warned it would block trade through the Red Sea, along with the Gulf and Sea of Oman, if the US naval blockade on Iranian ports continues.

US stocks opened with modest gains but two of the three major indices enjoyed banner sessions.

While the Dow index finished modestly lower, the broad-based S&P 500 scored its first-ever close above 7,000 points, while the tech-rich Nasdaq ended above 24,000 for the first time.

Jack Ablin of Cresset Capital Management said markets were cheered by a batch of earnings reports from large US banks that attested to the continued health of consumers and the relative health of the credit market.

"It reflects a very solid fundamental environment in the United States," Ablin said. "We're really not seeing the impact of the Iranian conflict on the economy."

Ablin said investors were essentially ignoring President Donald Trump's latest threat to fire Federal Reserve Chair Jerome Powell, not viewing that outcome as likely.

But the Iran conflict has added uncertainty, according to a Fed report released Wednesday.

"The conflict in the Middle East was cited as a major source of uncertainty that complicated decision-making around hiring, pricing, and capital investment," the Fed said in its "beige book" survey of economic conditions.

Many firms, it added, are "adopting a wait-and-see posture."

Elsewhere, disappointing sales from French luxury heavyweights Kering and Hermes weighed on the Paris stock market, with both companies citing the impact of fighting in the Gulf.

Kering's first-quarter revenues were down three percent at comparable currency rates, dragged down again by its flagship Gucci brand. Its share price slumped more than nine percent.

Hermes shed more than seven percent after the high-end handbag maker reported sales down 1.4 percent, as a stronger euro made its items more expensive for buyers abroad.

Paris closed the day lower, as did London. Frankfurt managed a small gain.

Earlier, most Asian equity markets turned in positive sessions.

- Key figures at 2020 GMT -

Brent North Sea Crude: UP 0.2 percent at $94.93 a barrel

West Texas Intermediate: UP less than 0.1 percent at $92.29 a barrel

New York - Dow Jones: DOWN 0.2 percent at 48,463.72 (close)

New York - S&P 500: UP 0.8 percent at 7,022.95 (close)

New York - Nasdaq Composite: UP 1.6 percent at 24,016.02 (close)

London - FTSE 100: DOWN 0.5 percent at 10,559.58 (close)

Paris - CAC 40: DOWN 0.6 percent at 8,274.57 (close)

Frankfurt - DAX: UP 0.1 percent at 24,066.70 (close)

Tokyo - Nikkei 225: UP 0.4 percent at 58,134.24 (close)

Hong Kong - Hang Seng Index: UP 0.3 percent at 25,947.32 (close)

Shanghai - Composite: FLAT at 4,027.21 (close)

Euro/dollar: UP at $1.1801 from $1.1796 on Tuesday

Pound/dollar: UP at $1.3570 from $1.3567

Dollar/yen: UP at 158.97 yen from 158.79 yen

Euro/pound: UP at 86.95 pence from 86.94 pence

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(B.Hartmann--BBZ)