Markets Hit Record Highs as AI Rally and Diplomatic Optimism Drive Sentiment Amid Commodity and Macro Shifts

index/">index Update

The S&Amp;Amp/">Amp;P 500 climbed 0.8% to a record above 7,020 and the Nasdaq/">Nasdaq surged over 1.4%, marking its best 11-day run, driven by strong gains in technology stocks. Broadcom and Meta advanced on AI-related developments, while Tesla jumped over 7% on software updates and AI5 chip progress. Sentiment was further supported by optimism around easing U.S.–Iran tensions and strong corporate Earnings/">Earnings, with Bank of America and Morgan Stanley posting solid results.

Market Movers

On Wednesday, the top gainers were Ascent Solar Technologies, Inc. (+59.80%) and Skillz Inc. (53.57%). On the contrary, Texxon Holding Limited. (-21.05%) and High Roller Technologies, Inc (-19.03%) declined the most the same day.

Commodities Update

WTI crude rose to around $92 per barrel and Brent climbed above $95 on Thursday, recovering from earlier weakness as markets assessed the likelihood of a potential extension of the U.S.–Iran ceasefire and the prospects for broader negotiations that could lead to the reopening of the Strait of Hormuz. While reports indicate that both sides may extend the truce to allow more time for discussions, the strait remains effectively closed under a U.S. naval blockade, keeping concerns over Supply/">Supply disruptions elevated. Additional uncertainty arises from Iran’s warning of possible retaliation by suspending shipments across key regional waterways, with investor focus now shifting to an expected second round of talks centered on reopening the strait and addressing nuclear issues.

Gold rose back above $4,800 per ounce and silver climbed past $80 on Thursday, supported by optimism around renewed U.S.–Iran negotiations and a potential ceasefire extension that could ease Inflation/">Inflation concerns and reduce the need for tighter Monetary Policy. Despite ongoing blockades in the Strait of Hormuz and lingering geopolitical risks, sentiment has improved on expectations of further talks, though both metals remain significantly below levels seen before the conflict.

Macro Updates

Dollar Weakens on Diplomatic Optimism and Easing Inflation/">Inflation Expectations

The dollar index/">index hovered near 98, close to six-week lows, as improving prospects of a U.S.–Iran diplomatic resolution reduced safe-haven Demand/">Demand. Additional pressure came from softer energy prices, which eased Inflation/">Inflation concerns and dampened expectations of further monetary tightening, with the Federal Reserve widely expected to keep rates unchanged in the near term

Strong Capital/">Capital Inflows Driven by Private Foreign Investment/">Investment

The U.S. recorded a net TIC inflow of $184.5 billion in February 2026, largely driven by $166.5 billion in private foreign Investment/">Investment, while official institutions contributed $18.0 billion. Foreign investors increased holdings of long-term U.S. securities by $101.1 billion despite official sector selling, alongside substantial gains in short-term instruments, particularly Treasury bills. Meanwhile, U.S. investors also expanded exposure to foreign securities, indicating continued cross-border Capital/">Capital activity.

Bonds Commentary

The U.S. 10-year Treasury Yield steadied around 4.27% on Thursday after recent Volatility/">Volatility, as optimism over a potential U.S.–Iran diplomatic resolution supported sentiment. Easing energy prices earlier in the week helped temper Inflation/">Inflation concerns and reduce expectations of further monetary tightening, while the Federal Reserve is broadly expected to keep interest rates unchanged in the near term.

Futures Update

U.S. stock index/">index futures traded near flat on Thursday following record highs in the S&Amp;Amp/">Amp;P 500 and Nasdaq/">Nasdaq, with sentiment supported by optimism around potential U.S.–Iran talks and ongoing corporate Earnings/">Earnings. Nasdaq/">Nasdaq 100 and Dow futures edged slightly higher, while S&Amp;Amp/">Amp;P 500 futures remained largely unchanged.

Stocks fluctuated throughout Thursday's Trading session but largely maintained a positive bias before closing moderately higher. The Nasdaq/">Nasdaq and S&Amp;Amp/">Amp;P 500 extended their strong recent gains, reaching new record closing highs. All major averages finished the day in positive territory, with the S&Amp;Amp/">Amp;P 500 rising by 183.33 points, or 0.26%, to close at 7,041.29. From a technical standpoint, the index/">index has hit an all-time high and shows a positive trend; however, there is a possibility of a mild correction in the near-term session. Additionally, the 14-period RSI is trending upward, though it is now in overbought territory—this doesn't signal an immediate Reversal/">Reversal but suggests caution, as a pause in upward momentum may occur. Immediate resistance is around 7,140, with support near 6,950.