Wall Street's Ascent Amid Economic Indicators and Fed Strategies

Wall Street resumed its upward trajectory on Thursday, with the S&P 500 and the Nasdaq approaching record closing highs. This rise occurred as the cease-fire between Israel and Iran held and economic indicators pointed towards the potential for the U.S. Federal Reserve to lower borrowing costs this year. All three major U.S. stock indexes experienced gains, positioning them for weekly increases.

The S&P 500 and the Nasdaq are tantalizingly close to their all-time closing highs, while the Nasdaq 100 achieved its second consecutive record closing high on Wednesday. According to Ross Mayfield, an investment strategy analyst at Baird in Louisville, Kentucky, the market's momentum and crucial technical levels, along with favorable economic data, supported this uptrend.

Bank stocks significantly outperformed after the Federal Reserve proposed relaxing leverage rules, which would ease capital requirements for big banks holding relatively low-risk assets, resulting in the S&P 500 banks index climbing by 1.7%. Richmond Fed President Thomas Barkin cautioned against limiting options amid economic uncertainties, although he downplayed the inflationary impact of tariffs.

(With inputs from agencies.)