S&P 500 and Nasdaq Hit All-Time Highs as Trump Claims Economic Momentum

Benzinga reported Wednesday that the S&P 500 all-time high was confirmed by midday trading, with the Nasdaq 100 also touching a fresh peak. The Dow Jones Industrial Average posted strong gains alongside its larger-cap counterparts. President Donald Trump marked the milestone on Truth Social, declaring that jobs and retirement accounts were surging along with equities.

AI Earnings and Oil Prices Drive the Rally

Two distinct forces combined to push stocks into record territory Wednesday. Robust earnings from artificial intelligence-linked companies gave the tech-heavy Nasdaq a powerful tailwind. Simultaneously, crude oil prices fell sharply on reports that a potential diplomatic agreement between Washington and Tehran could ease supply-chain stress through the Strait of Hormuz. Lower energy costs tend to ease broader inflation pressures, giving equities further room to run.

Also Read: What the Fed’s Rate Decision Means for Your Portfolio

Background: Geopolitical Tension Had Rattled Markets

The rally arrives after a period of notable turbulence. Earlier in the week, the U.S. military disclosed it had destroyed Iranian fast-attack boats and intercepted cruise missiles and drones. Iran had attempted to disrupt commercial traffic through the Strait of Hormuz, a chokepoint for roughly 20% of global oil flows. Trump issued a stark warning that any attack on American vessels would be met with overwhelming force, though he stopped short of signaling an imminent U.S. strike. The threat of wider conflict had kept investor sentiment fragile heading into midweek.

Also Read: Strait of Hormuz: Why It Matters to Global Energy Markets

Labor Market Holds Steady but Cracks Appear

March nonfarm payrolls expanded by 178,000, according to the Bureau of Labor Statistics, with the unemployment rate unchanged at 4.3%. Health care, construction, and transportation led hiring. Federal government payrolls continued to shrink. Long-term unemployment edged slightly higher, and broader participation metrics were largely flat. The data painted a picture of resilient but unspectacular labor demand.

Trump’s Poll Numbers Tell a Complicated Story

Despite the market record, Trump’s approval ratings remain under pressure. A Washington Post/ABC News/Ipsos survey showed only 37% overall approval. Roughly three-quarters of respondents disapproved of his handling of the cost of living. The divergence between equity market performance and household economic sentiment is a recurring tension for the administration heading into the second half of the year.

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