The S&P 500 hugged its record close on Thursday as traders weighed conflicting signals on a potential US-Iran deal, with the benchmark index little changed at 7,337 in early afternoon trading after closing at an all-time high on Wednesday.
The Dow Jones Industrial Average added about 0.3 per cent and the Nasdaq Composite edged up 0.13 per cent. Small-capitalisation stocks outperformed, with the Russell 2000 advancing 1.5 per cent. Energy and industrials lagged on hopes of lower oil prices.
The rally over the past week has been propelled by expectations that a partial accord with Tehran could reopen the Strait of Hormuz, easing pressure on shipping rates and energy markets. Wednesday's close took the S&P past 7,300 for the first time.
Big-cap technology earnings have so far reinforced the bull case. Microsoft posted earnings per share of $4.27 versus a $4.06 consensus and revenue of $82.9 billion, while Apple delivered $2.01 EPS on revenue of $111.2 billion. Microsoft also raised its calendar-year capital-expenditure plan to $190 billion, well ahead of the $154 billion analysts had penciled in.
Veteran investor Paul Tudor Jones told CNBC the AI-driven bull market still had "another year or two" to run, drawing comparisons with the early Microsoft software era and the 1990s commercialisation of the internet.
Traders are now positioning for Nvidia's May 20 earnings report. Analysts expect EPS of $1.76, up almost 117 per cent year-on-year, and revenue of $78.5 billion, up 78 per cent. Goldman Sachs has signalled it expects a "beat and raise" quarter.
A surprise rebuff of the US proposal by Tehran could reverse the move, traders cautioned, with energy futures the most exposed asset class.