The S&P 500 just closed above 7,000 for the first time. It shows investors are done with the Iran war.

• The S&P 500 rose to a new all-time high, adding to gains days after it erased wartime losses.
• The index hit its first record high since January and closed above 7,000 for the first time ever.
• Gains were largely fueled by mega-cap tech. The Nasdaq 100 rose over 1%.

The rally to records has resumed.

The S&P 500 closed above 7,000 for the first time ever on Wednesday, adding to gains that helped it erase its Iran war-fueled losses earlier in the week.

The benchmark index had sagged for much of 2026, dragged lower by war and a rethink of the AI trade. The index is up 2% through Wednesday's close.

Its latest rally shows investors are ready to put the war behind them as they get ready to digest the bulk of first-quarter earnings starting next week.

Here's where US indexes stood at the 4:00 p.m ET closing bell on Wednesday:

• S&P 500: 7,022.90, up 0.8%
• Dow Jones Industrial Average: 48,463.81, down 0.15% (-72.18 points)
• Nasdaq composite: 24,016.017, up 1.6%

Optimism about a peace deal with Iran has grown as Donald Trump's blockade of the Strait of Hormuz continues and reports indicate a second round of peace talks between the US and Iran could soon kick off.

Trump has teased a resolution to the war in the Middle East for weeks. That idea has been taken more seriously by markets since the US announced a ceasefire with Iran last week. Trump stated on Wednesday that the war was "very close to over."

A peace deal with Iran would put an end to one of the market's dominating anxieties: that a prolonged conflict could push oil prices higher and fan a new bout of inflation. That, in turn, could hit US growth at a time when the economy has already been slowing.

Confidence in a peace deal wavered after talks with Iran fell through in Pakistan over the weekend, and the US initiated a blockade of the Strait of Hormuz. But the president's latest comments have reversed much of the pessimism.

"Overall, investors appear convinced that the war will soon be over. Whether the Strait of Hormuz will operate as it did before hostilities began is another matter," David Morrison, a senior market analyst at Trade Nation, wrote of the market moves on Wednesday.

"Signs of de-escalation in the Middle East have lifted risk appetite, with falling oil prices helping ease inflation concerns," Adam Turnquist, a chief technical strategist at LPL Financial, wrote in a note, pointing to the rally in tech stocks.

The market's gains appeared to be largely driven by investors piling back into mega-cap tech after the sector's major sell-off at the start of the year.

The Roundhill Magnificent Seven ETF, which tracks the seven mega-cap tech giants at the heart of the AI trade, was up more than 2% on Wednesday.

"Today's advance is almost entirely being driven by the Magnificent 7," Jose Torres, a senior economist at Interactive Brokers, wrote. "Other equity segments are struggling in light of climbing interest rates alongside loftier oil prices."