US stocks advanced after the S&P 500 and Nasdaq reached new records, driven by optimism over a potential US-Iran war ceasefire and growing demand for AI. The S&P 500 rose 0.8% to a record 7,022.95. Stocks also ticked up as investors awaited the US-Iran peace deal, with major averages climbing amid hopes for a de-escalation.

US stocks rose to new heights on April 16, with the S&P 500 and Nasdaq notching fresh records [doc5]. The benchmark S&P 500 advanced 0.8% to 7,022.95, while 60% of Polymarket traders bet on an up opening for the day. The rally was driven by optimism over a potential US-Iran war ceasefire and easing geopolitical tensions [doc5].

Key earnings were expected from PepsiCo, Travelers, Abbott Laboratories, and Charles Schwab, but the market's focus was on the geopolitical headlines, with investors awaiting the US-Iran peace deal [doc5, doc9].

The market's positive sentiment was compounded by growing demand for AI, with major tech stocks contributing to the rally

However, the rally was not without its dips, with the S&P 500 hitting record highs but later taking a pullback. Nonetheless, the overall market mood remained upbeat, with stocks advancing as investors looked ahead to the next steps in the US-Iran peace process [doc9].

US Stocks Reach New Record Highs Amid Iran Peace Deal Hopes, AI Demand Boost