US stocks end mostly higher as S&P 500, Nasdaq close at records on Iran war optimism

US stocks closed mixed Wednesday, with the S&P 500 and Nasdaq Composite ending with new records as investors looked past Iran war concerns and remained hopeful that it could ease soon.

The S&P 500 gained 0.8%, or 55.57 points, to close at 7,022.95, while the Nasdaq rose 1.6%, or 376.93 points, to 24,016.02.

The Dow, however, fell 0.15%, or 72.27 points, to finish at 48,463.72.

The Nasdaq extended its winning streak to 11 sessions. The S&P 500 also marked its 10th close in positive territory in the last 11 trading days.

Investor sentiment remained supported by hopes that the US-Israel war on Iran could move closer to an end, helping equities extend this week’s gains.

US President Donald Trump, who said Tuesday that a new meeting with Iran could take place in Pakistan within two days, said in a new interview that the war is "close to over."

Treasury Secretary Scott Bessent said Wednesday that Middle Eastern finance ministers have indicated they could rapidly restart oil flows once the Strait of Hormuz fully reopens.

"I've been meeting with a lot of my Middle Eastern counterparts, the finance ministers, and they all say that once the Straits are open, they can start pumping again within one week," Bessent told reporters.

The S&P 500 has risen 3% this week, while the Nasdaq has added nearly 5%. The Dow is up more than 1% on a week-to-date basis.

Tesla shares jumped 7.65% on Wednesday after CEO Elon Musk touted progress on the company’s forthcoming AI5 chip.

Meanwhile, the Federal Reserve's Beige Book showed the US economy expanded at a slight to modest pace in recent weeks, but households across much of the country showed mounting signs of financial strain as higher prices and war-related uncertainty weighed on activity.

European markets

European stocks saw a mostly negative course, with the pan-European Stoxx Europe 600 index falling 0.43% to close at 617.27 points.

In national markets, the UK's FTSE 100 dropped 0.47% to 10,559.58, and France's CAC 40 lost 0.64% to 8,274.57.

Italy's FTSE MIB 30 slipped 0.04% to 48,155.82, while Spain's IBEX 35 lost 0.55% to end at 18,185.80

Germany's DAX 40 edged up 0.09% to 24,066.7 points.