SPX: S&P 500 Surges on War Talks Optimism. It’s Now Just 35 Points from New Record.

What’s 35 to 7,000? A gain of 0.5%. How one dip buying led to another. And then another.

📈 Index Creeps Toward 7,000

• The S&P 500 jumped 1.2% Tuesday, leaving it just 35 points shy of its all-time high of 7,002 set in January. In percentage terms, that’s half a percent — basically one decent trading session away.
• The rally marked the index’s ninth gain in the last 10 sessions, suggesting investors are treating geopolitical dips like clearance sales rather than warning signs.
• Meanwhile, the Nasdaq Composite extended its winning streak to 10 straight sessions, reinforcing the idea that tech remains the market’s preferred engine whenever optimism returns.

🕊️ Markets Bet on Talks Progress

• Stocks climbed after a White House official said a second round of negotiations between Washington and Tehran is likely happening this week, reviving hopes the latest Middle East tensions might cool rather than escalate further.
• That optimism comes despite last weekend’s stalled talks in Islamabad and Donald Trump announcing a blockade of the Strait of Hormuz — a route responsible for roughly 20% of global oil shipments. Normally, that’s headline material markets don’t ignore.
• Instead, traders appear to be pricing in a scenario where diplomacy eventually wins. Markets often move on expectations, not confirmations — and right now expectations are leaning (not so) cautiously bullish.

🔄 Dip Buyers Keep Showing Up

• The Dow Jones Industrial Average added 318 points, or 0.7%, joining the rally as gains broadened beyond mega-cap tech. Looks like participation across sectors is improving rather than narrowing.
• Bitcoin briefly pushed above $76,000 before easing back toward $74,000, another signal that risk-sensitive assets are still attracting flows alongside equities during the rebound.
• Early Wednesday futures tied to the S&P 500 were flat, suggesting traders may pause before the next push higher. Still, with the index sitting just 35 points from making history, the psychological pull of 7,000 is getting harder to ignore.