S&P 500 Nears Historic High Amid Geopolitical Easing and Market Optimism

The S&P 500 surged to 6,141.02 points, a 0.8% gain, marking a swift rebound from April lows despite lingering trade and geopolitical uncertainties. A ceasefire between Israel and Iran eased Middle East tensions, acting as a catalyst for the rally. Oil prices retreated, further buoying investor sentiment.

U.S. markets have added nearly $10 trillion in capitalization over two months, reflecting renewed risk appetite. Yet underlying economic indicators suggest slowing growth, creating a divergence between market exuberance and macroeconomic reality.

Freedom Capital's Jay Woods notes the rally stems from reduced geopolitical risk premiums and expectations of moderated trade policies. The MOVE highlights markets' sensitivity to geopolitical developments, particularly in energy-producing regions.