Wall Street edged higher on Wednesday, with benchmark indices approaching record levels after a strong two-week rally driven by optimism that the global economy may avoid a worst-case fallout from the US-Iran conflict.The S&P 500 rose 0.2% in early trade and was on track to surpass its January record, while the Dow Jones Industrial Average gained 91 points, or 0.2%, and the Nasdaq Composite advanced 0.3%, AP reported.Treasury yields remained largely steady as diplomatic efforts intensified to extend the ceasefire between the US and Iran and resume negotiations ahead of the current agreement’s expiry next week.Markets have rebounded sharply after a brief correction, with the S&P 500 climbing about 10% since late March after having fallen nearly 10% below its peak earlier.The recovery has been fuelled by expectations of easing tensions and a potential restoration of oil flows through the Strait of Hormuz, a critical route for global energy supplies.However, volatility persists as oil prices continue to fluctuate, signalling lingering uncertainty among investors.Brent crude rose 0.2% to $94.94 per barrel, still significantly higher than pre-war levels of around $70, though below its peak of $119 during heightened conflict concerns.Analysts said a successful outcome of US-Iran talks could limit the war’s economic impact and allow markets to refocus on corporate earnings and growth prospects. Corporate results provided additional support to equities.Bank of America rose 2.5% after reporting a profit of $8.6 billion for the first quarter, up 17% year-on-year and ahead of estimates. CEO Brian Moynihan said the bank saw signs of a “resilient American economy,” citing strong consumer spending and improved credit trends.Morgan Stanley surged 5.1% after posting better-than-expected quarterly results.In global markets, European indices were mixed, while Asian markets ended with modest gains. In the bond market, the yield on the 10-year US Treasury held steady at 4.26%.
