U.S.-Iran Peace Talks, ASML, AVGO & META Move Stock Market Near Record Highs

The U.S.-Iran peace talks are fueling market optimism, pushing major indices near all-time highs as investors price in a potential de-escalation in the Middle East. Kevin Green, senior markets correspondent, notes that the market has largely priced out war risk, with semiconductor stocks—led by ASML, Broadcom, and Meta—driving gains. ASML beat expectations and raised guidance, citing strong hyperscaler capital spending and improved delivery timelines, while Meta extended its custom AI chip deal with Broadcom through 2029, signaling continued AI infrastructure investment. Despite this bullish momentum, Green remains cautious, highlighting unresolved geopolitical hurdles like Iran’s nuclear program and Strait of Hormuz access, as well as ongoing military deployments in the region. Bank of America’s strong earnings—driven by a record-breaking equity trading quarter and improved credit quality—added to the positive sentiment, though risks around private credit exposure and global economic slowdown remain. The S&P 500 is poised to test the 7,000 level, with gamma exposure concentrated there, but a pullback could test recent gaps if geopolitical tensions resurface. The episode underscores a critical divergence: markets are betting on peace, but the underlying risks—especially in the Middle East and in AI-driven credit markets—remain unresolved.