S&P 500 Breaches 7,000 Amid US-Iran Peace Talks

Wall Street soared to record highs driven by Middle East de-escalation hopes, while resilient labor data pushed the Federal Reserve toward a higher-for-longer interest rate stance.

• 🕊️ S&P 500 crosses 7,000 on US-Iran diplomacy.
• 📉 Charles Schwab shares slide following revenue miss.
• 🦅 Resilient jobs data fuels hawkish Fed expectations.
• 🌍 IMF releases regional growth and fiscal outlooks.

S&P 500 and Nasdaq Hit All-Time Highs

Wall Street's major averages closed at fresh record highs yesterday, with the S&P 500 notably breaching the historic 7,000 mark for the very first time. The bullish momentum was heavily driven by optimistic developments in U.S.-Iran peace talks, which investors hope will stabilize the Middle East and erase the war premium on global energy prices. For more details on this historic rally, read the Investing.com market recap.

Key Assets to Watch: $SPY, $USO. While the broader market ETF $SPY benefits from euphoric risk-on sentiment, the oil-tracking fund $USO will likely face downward pressure as geopolitical risk premiums evaporate.

Charles Schwab Slumps on Q1 Revenue Miss

Despite beating earnings-per-share estimates, shares of Charles Schwab tumbled nearly 5% due to a noticeable miss in total revenue and weaker-than-expected net interest income. This decline highlights the persistent negative impact of cash-sorting and market volatility on major brokerage firms in the current restrictive economic environment. Full coverage of the earnings report is available via the Charles Schwab Market Update.

Key Assets to Watch: $SCHW, $XLF. $SCHW will likely see continued downside volatility as investors digest the core revenue miss, potentially dragging down the broader financial sector ETF $XLF in sympathy.

Jobless Claims Fuel Hawkish Fed Expectations

Initial weekly jobless claims fell to an unexpected 207,000 yesterday, underscoring persistent labor market resilience and providing the Federal Reserve with ample room to maintain restrictive monetary policy. Consequently, traders are actively scaling back their 2026 rate cut expectations, eagerly awaiting scheduled commentary from Fed officials like Mary Daly and Christopher Waller for forward guidance. Further economic insights can be found on Briefing.com.

Key Assets to Watch: $TLT, $UUP. The long-term treasury ETF $TLT is expected to drop as yields rise on higher-for-longer rate prospects, while the US Dollar Index fund $UUP should strengthen on hawkish Fed sentiment.

IMF Highlights Global Growth Risks

During the 2026 Spring Meetings in Washington, D.C., the International Monetary Fund released its Regional Economic Outlook for both Europe and the Western Hemisphere. The reports emphasize the severe fiscal challenges posed by elevated global interest rates and evaluate the economic spillovers resulting from ongoing Middle East conflicts. Explore the detailed regional assessments directly at IMF.org.

Key Assets to Watch: $VGK, $EWG. European equity ETFs like $VGK and $EWG may experience selling pressure as the IMF highlights persistent regional growth headwinds and restrictive fiscal conditions.