US Stock Market Notches Closing Records as AI-Fueled Rally Takes a Breather

Market Rally Pauses as Investors Eye Middle East Peace Talks

The Dow Jones Industrial Average rose to a record closing high on Wednesday, lifted by gains in healthcare and consumer stocks, while the S&P 500 and Nasdaq were steady, as investors took a pause from the AI-led rally and cautiously watched Middle East peace talks.

The Dow, which also hit closing highs on Friday and Thursday, saw a rotation into healthcare and consumer stocks, with Procter & Gamble shares rising 3.2% and UnitedHealth climbing 1.9%. The Dow Jones Industrial Average rose 182.60 points, or 0.36%, to 50,644.28. The S&P 500 gained 1.24 points, or 0.02%, to 7,520.36, and the Nasdaq Composite gained 18.55 points, or 0.07%, to 26,674.74.

Banking stocks were down, with shares of JPMorgan Chase sliding 2.4% after CEO Jamie Dimon warned that expenses this year could be $1 billion higher than estimated. U.S. Secretary of State Marco Rubio said there has been some progress in negotiations with Iran toward a deal, but President Donald Trump said the U.S. and Iran still have issues to resolve.

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The S&P 500 energy index fell 1.5%, tracking a decline of as much as 5% in oil prices. Tech shares dropped after reaching an all-time high on Tuesday, with chip stocks down after a strong rally. Intel fell 1.4%, and Marvell Technology dropped 4.6%, while Qualcomm fell 6% after sharp gains on Tuesday.

Goldman Sachs raised its 2026 year-end forecast for the S&P 500 to 8,000 from 7,600, citing continued strength in corporate earnings. Markets will next look toward the personal consumption expenditures index data on Thursday, which could provide fresh clues on the monetary policy path forward under new chair Kevin Warsh.

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Advancing issues outnumbered decliners by a 1.13-to-1 ratio on the NYSE, with 453 new highs and 99 new lows. On the Nasdaq, 2,420 stocks rose, and 2,498 fell, as declining issues outnumbered advancers by a 1.03-to-1 ratio. The S&P 500 posted 37 new 52-week highs and 8 new lows, while the Nasdaq Composite recorded 169 new highs and 74 new lows. Volume on U.S. exchanges was 18.81 billion shares, compared with the 18.78 billion average for the full session over the last 20 trading days.