Wall Street's benchmark equity indexes reached fresh highs on Wednesday as US crude oil fell below $90 a barrel amid renewed optimism around prospects for an end to the Middle East conflict.
The Dow Jones Industrial Average rose 0.4% to 50,644.3, its highest finish ever. The Nasdaq Composite gained 0.1% to 26,674.7, while the S&P 500 eked out a gain to end at 7,520.4 -- both notching new record closing highs for a second consecutive day.
Six of the 11 sectors were in the red, led by energy, while consumer discretionary paced the gainers.
West Texas Intermediate crude oil was last down 4.8% at $89.39 a barrel, while Brent fell 4.6% to $95.
Secretary of State Marco Rubio said the US will give talks with Iran "every chance to succeed," according to a CNBC report.
Israel reportedly launched fresh attacks in Lebanon, targeting Iran-backed Hezbollah. This could complicate peace talks as Tehran has demanded that any deal must ensure an end to fighting in Lebanon, Stifel said.
"Despite the latest clashes, however, markets remain somewhat hopeful an interim deal (between the US and Iran) may still be likely," Stifel Chief Economist Lindsey Piegza said in a note Wednesday.
President Donald Trump on Wednesday expressed confidence that the US would be able to reach a deal to end the conflict, but he is not yet satisfied with the terms, CNN reported.
Iranian state TV previously claimed that a draft memorandum on ending the conflict calls for the US to withdraw its military forces and lift the naval blockade in return for reopening the Strait of Hormuz within a month. However, the White House dismissed it as a "complete fabrication," CNN reported.
US Treasury yields were mixed, with the 10-year rate down 1.1 basis points at 4.48% and the two-year rate little changed at 4.04%.
In company news, JPMorgan Chase (JPM) Chief Executive Jamie Dimon said Wednesday at a conference that the bank's expenses this year could be "closer" to $106 billion, or $1 billion higher than previously projected. JPMorgan shares fell 2.4%.
Dimon also said that "there might be in the next couple of years a chance to put $10 billion or $20 billion to work buying something," referring to a potential merger and acquisition opportunity, according to a FactSet transcript.
Zscaler (ZS) shares tanked nearly 32% after the cloud security company provided a fiscal fourth-quarter revenue outlook below market estimates, even though it reported better-than-expected results for the prior three-month period.
PDD's (PDD) first-quarter earnings unexpectedly declined year over year, while the Chinese e-commerce platform's revenue fell short of market estimates. The company's Nasdaq-listed stock slid 10%.
Abercrombie & Fitch's (ANF) fiscal first-quarter earnings topped Wall Street's projections amid record sales for the apparel retailer. The company's shares jumped 8.9%.
Gold was last down 1.2% at $4,450.70 per troy ounce, while silver lost 2.3% to $74.87 per ounce.
