S&P 500: Record highs with conflict-sensitive backdrop – Deutsche Bank

Deutsche Bank’s Jim Reid and colleagues describe how the S&P 500 has rallied strongly, reaching fresh record highs as Iran–US resolution hopes improved and Oil fell. They caution that earlier war episodes, such as Ukraine, show rallies can reverse if peace hopes fade. The report links equity strength to easing stagflation fears and energy-price relief.

Equities rally on easing stagflation fears

"In turn, multiple asset classes rallied as investors dialled back fears of a stagflation shock."

"Those included equities, where multiple indices reached new records on the back of the Strait of Hormuz opening. The S&P 500 (+4.54%) saw its largely weekly rise since May 2025, closing at a new record high of 7126 (+1.20% on Friday)."

"It had crossed above the 7,000 threshold for the first time earlier in the week on Wednesday."

"The Nasdaq Composite also rose +6.84% (+1.52% on Friday) to a new record, extending to a 13th day of consecutive gains for the first time since 1992."

"Remember the 10%+ S&P 500 rally in the early weeks of the war in Ukraine, when hopes briefly grew of an early negotiated settlement, only to be disappointed."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)