The S&P 500 and Nasdaq posted record closing highs on Thursday after news reports said the US and Iran had reached a draft agreement to extend their ceasefire by 60 days, while investors also digested key inflation data.

The news was first reported by Axios, which said talks on Iran’s nuclear program would be held during the ceasefire period, but that the plan still needed President Donald Trump’s approval.

Jamie Cox, managing partner at Harris Financial Group, said, “Traders are on a hair trigger back and forth on deal news, and are leaning long to avoid being crushed by better-than-expected results. The trickier thing is that inflationary forces won’t subside as quickly as the market wants.” US inflation rose at its fastest pace in three years in April due to higher energy prices amid the Iran war, economic data showed. Meanwhile, US GDP was revised down to a 1.6% annual increase for the first quarter, with the pace expected to slow this quarter.

According to preliminary data, the S&P 500 rose 43.50 points, or 0.58%, to end at 7,563.71, while the Nasdaq Composite added 239.79 points, or 0.91%, to 26,917.47. The Dow Jones Industrial Average rose 24.11 points, or 0.04%, to 50,666.29. The S&P 500 healthcare index posted strong gains. Eli Lilly moved after CVS Health said it would restore the drugmaker’s weight-loss injection, ZapBound, to its coverage and add its newly approved obesity pill Foundaone.

Tech stocks also rose. Microsoft received information from a news website later that the company will release a new coding model next week.

Marvell Technologies rose after UBS raised its target price to $230 from $195.

The company’s shares have more than doubled this year so far.

Shares of Snowflake rose after the data analytics firm lifted its annual product revenue forecast and announced a $6 billion five-year AI infrastructure deal with Amazon Web Services.

Peers Datadog and MongoDB also climbed.

Renewed confidence in AI and the pace of earnings growth have underlined the recent rally despite tensions in the Middle East, which have boosted inflation expectations.

“Markets continue to weather these risks as the global economy and corporate earnings remain relatively resilient,” said Jitania Kandhari, deputy CIO, solutions and multi-asset at Morgan Stanley Investment Management.

“Geopolitical instability could ultimately boost spending in areas connected to AI, including cybersecurity, defense technology, energy infrastructure and supply-chain resilience, strengthening the long-term investment case.”

While the S&P 500 is trading at about 21 to 22 times forward earnings versus a trailing 10-year average of 19.7 times, investors are less concerned because earnings expectations are rising faster than stock prices, Kandhari said. Among other movers, the dollar tree climbed after the discount retailer lifted its full-year profit forecast, while Best Buy also rose after the electronics retailer forecast better-than-expected second-quarter sales. Drone companies surged after the Wall Street Journal reported that the Trump administration was in talks to fund drone companies. Shares of unusual machines rose.