U.S. stocks have climbed more than 10% from their late-March low, driven by investor hopes that diplomacy will avert a worst-case scenario for the global economy, even as Brent crude near $100 a barrel and divergent U.S.-Iranian negotiating positions signal the conflict’s outcome remains unresolved.

The S&P 500 rose 0.3% to 7,041.28 on Thursday, its 11th gain in 12 sessions and a second consecutive all-time closing high, as better-than-expected corporate earnings helped Wall Street hold its footing despite continued uncertainty over the Iran war. The Dow Jones Industrial Average added 115 points, or 0.2%, to 48,578.72, and the Nasdaq composite closed at 24,102.70, according to the Associated Press.

Pakistan’s army chief met Thursday with Iran’s parliament speaker to press for an extension to a ceasefire that has paused almost seven weeks of fighting between Israel, the United States and Iran. The diplomatic meeting gave markets some reason for optimism even as oil prices continued to signal caution.

U.S. stocks have risen more than 10% since hitting a low in late March, driven by investor hopes for a negotiated resolution or an agreement that would prevent a worst-case scenario for the global economy.

Oil Signals Caution

Brent crude, the international benchmark, settled at $99.39 a barrel Thursday, up 4.7% on the day. The price stood near $70 before the war began and has reached as high as $119 at points during the conflict, reflecting persistent uncertainty about how long oil will remain trapped in the Persian Gulf region and away from customers.

ING Bank strategists Warren Patterson and Ewa Manthey wrote Thursday that the risk of talks collapsing cannot be dismissed. “The key upside risk for the market is that peace talks between the US and Iran break down,” they wrote. “This isn’t an unrealistic scenario, given that US and Iranian demands remain fairly wide apart.”

Earnings Season

Large U.S. companies continued to report better results than analysts had forecast for the start of 2026, providing a counterweight to geopolitical uncertainty.

PepsiCo rose 2.3% after reporting stronger-than-expected first-quarter results. The company said customers bought more snacks during the quarter, after PepsiCo said in February it would cut prices on Lay’s, Doritos, Cheetos and Tostitos chips to win back consumers frustrated by high prices.

J.B. Hunt Transport Services gained 6.3% and Marsh & McLennan climbed 4.4% after both companies delivered stronger results than analysts expected.

Technology stocks drew support from Taiwan Semiconductor Manufacturing Co., an industry heavyweight, which reported stronger revenue and profit for the first quarter of 2026 than analysts had anticipated. TSMC Chief Financial Officer Wendell Huang said the company expects strong demand to continue into the spring.

Not every report lifted its stock. Abbott fell 6% despite posting slightly better-than-expected results, after the health care company cut its full-year profit forecast primarily because of its purchase of cancer-screening company Exact Sciences.

Allbirds fell 35.8%, giving back a portion of the previous session’s 582% surge. The company, formerly known for its sneakers, is pivoting to the artificial-intelligence industry and plans to rent out access to high-powered AI chips as a service.

Global Markets

Indexes climbed across much of Europe and Asia. Japan’s Nikkei 225 jumped 2.4%, South Korea’s Kospi rallied 2.2% and Hong Kong’s Hang Seng rose 1.7%.

China reported 5% economic growth for the January-March quarter, an acceleration from the previous quarter. Economists said China has largely absorbed the initial impacts of the Iran war, though some warned its export sector could face more significant headwinds in the coming months from slower global economic growth.

Bond Market

The 10-year Treasury yield held at 4.29% after a government report showed fewer U.S. workers filed new unemployment claims last week, a sign the labor market remained firm.