With expectations rising for a cease-fire deal to end the Iran war and for normalization in the Strait of Hormuz, the three major New York stock indexes all closed at a record high on the 27th (local time).
On the New York Stock Exchange, the Dow Jones Industrial Average rose 182.60 points, or 0.36%, to close at 50,644.28. The Standard & Poor's (S&P) 500 index added 1.24 points, or 0.02%, to 7,520.36, while the tech-heavy Nasdaq composite advanced 18.55 points, or 0.07%, to 26,674.73.
The S&P 500 and the Nasdaq, which had been weaker intraday, turned slightly higher into the close.
All three major U.S. stock indexes set record highs on a closing basis. It was the first time in seven months, since Oct. 28 last year, that all three closed at record highs simultaneously.
Goldman Sachs said U.S. corporations' earnings are being revised higher than initially expected and raised its year-end S&P 500 target to 8,000 from 7,600.
Micron, which surpassed a $1 trillion market capitalization the previous day, rose 3.64%. In contrast, other major semiconductor names such as Nvidia (-1.05%), AMD (-1.66%), and Intel (-1.42%) declined.
Consumer goods and healthcare sectors were strong. Procter & Gamble rose 3.17%, and The Home Depot, Inc. (2.35%), Nike (2.31%), and UnitedHealth (1.90%) led the session.
Markets are focused on the April personal consumption expenditures (PCE) price index due on the 28th. The PCE price index is the inflation gauge the Federal Reserve (Fed) uses as a guide for monetary policy.
International oil prices plunged as expectations grew for an imminent cease-fire agreement after Iran's state media reported a draft cease-fire plan.
Brent futures fell 5.3% from the previous session to $94.29 a barrel, and U.S. West Texas Intermediate (WTI) futures dropped 5.6% to $88.68 a barrel. It was the first time in about a month, since the 20th of last month, that WTI settled below $90 a barrel.