Yesterday, equity indices closed with strong gains. The S&P 500 rose by 0.80%, while the Nasdaq 100 strengthened by 1.59%. The Dow Jones Industrial Average slipped by 0.15%.

Global equity markets are experiencing a period of euphoria, reaching unprecedented highs. Record levels were conquered on the back of encouraging signs of a possible easing of tensions between the United States and Iran. That news allowed investors to trim geopolitical risk premia, which quickly supported market sentiment.

The broad global equity gauge, the MSCI All Country World Index, posted an impressive 0.3% gain, setting a new record. This rise marked the tenth consecutive day of sustained gains, supported by strong corporate results out of the US. Robust financial performance by American companies materially improved overall risk appetite and fueled a further rally.

Asian equity markets also advanced confidently, rising by 1.2%. That allowed Asian bourses to almost fully offset losses incurred during the escalation of hostilities. The Nikkei and S&P 500 indices, reflecting Japanese and US market dynamics respectively, have hit their all-time highs, confirming the global uptrend.

A positive factor for sentiment was that Brent crude held around $95 per barrel, well below last month's peak near $120. The US dollar was largely unchanged.

The MSCI All Country index, which had plunged by about 9% since the start of the war to its March 30 low, has recovered those losses amid expectations that the US and Iran will ultimately reach a peace accord. Renewed interest in tech stocks also helped reverse last month's sell-off, leading to a technical correction across several indices.

The US and Iran are reportedly considering extending the current ceasefire — which expires next Tuesday — for another two weeks to allow more time for talks aimed at a peace agreement. US President Donald Trump also said leaders of Israel and Lebanon will hold talks.

According to MLIV, major Asian equity indices are enjoying another significant rebound as investors refocus on the profitability of large corporations, while the Iran war recedes into the background. In addition, the tug-of-war between short?term inflationary pressure and medium?term growth risks is keeping bond yield curves relatively stable, which is another positive for equities, experts added.

Elsewhere, gold rose by 0.6% to settle at around $4,820 an ounce, and silver jumped by 1.8%. Treasuries advanced, with the 10-year benchmark yield down two basis points to 4.27%, as lower oil prices eased inflation concerns.

As for the S&P 500 technical picture, the primary task for buyers today is to overcome the nearest resistance level of $7,049. That would help the index gain upside momentum and could pave the way for a surge to $7,066. Equally a priority for bulls will be control above $7,087, which would strengthen buyers' positions. In the event of a downside move amid reduced risk appetite, buyers must assert themselves around $7,033. A break below that level would quickly push the instrument back to $7,013 and could open the way to $6,993.