Stock market today: Dow clinches record high, S&P 500 and Nasdaq rise as stocks rebound on US-Iran peace hopes

May 21, 2026 - 18:31

Wall Street closed higher on Tuesday, with the Dow Jones Industrial Average securing a new record high, while the S&P 500 and Nasdaq also posted gains. The broad market rally was fueled by renewed hopes for de-escalation between the United States and Iran, easing geopolitical tensions that had weighed on investor sentiment in recent sessions.

The Dow rose more than 200 points, surpassing its previous all-time closing high. The S&P 500 climbed roughly 0.6 percent, and the tech-heavy Nasdaq added about 0.5 percent. Energy stocks saw a mixed session as crude oil prices dipped on the prospect of reduced supply disruption risks. Meanwhile, defensive sectors like utilities and consumer staples lagged behind as traders rotated into riskier assets.

The rebound followed a period of uncertainty driven by escalating rhetoric in the Middle East. Reports of potential diplomatic progress between Washington and Tehran encouraged buying across several sectors. Investors also looked past lingering concerns about interest rates, focusing instead on the possibility of a calmer geopolitical landscape.

In corporate news, Nvidia shares slipped in after-hours trading after the chipmaker's quarterly earnings report failed to deliver the kind of blowout surprise that markets had grown accustomed to. While the results beat analyst estimates, the guidance and commentary did not spark the same level of enthusiasm seen in previous quarters. Separately, SpaceX took a significant step toward its long-anticipated initial public offering, though no official timeline has been set. The company's progress added a layer of optimism to the broader market narrative, particularly for space and technology investors.

the session marked a clear shift in mood, with the Dow's record close serving as a headline indicator of renewed confidence.