Stunning turnaround: The stock market is on the precipice of an all-time record

The S&P 500 is on the cusp of a record high. That’s a remarkable change of events, since the index was on the brink of a bear market just two months ago.

The S&P 500 is on the cusp of a record high. That’s a remarkable change of events, since the index was on the brink of a bear market just two months ago. The S&P 500 on Tuesday closed just 0.85% away from an all-time high. US stocks on Wednesday opened mixed. The Dow was down 40 points. Meanwhile, the broader S&P 500 gained 0.25% and the tech-heavy Nasdaq Composite gained 0.6%. The S&P 500 soared 2.1% across the past two days as investors welcomed a ceasefire, albeit fragile, between Israel and Iran. As the stock market has climbed back toward record highs, investors are wondering whether there is room for stocks to climb higher or if further roadblocks lie ahead. “As Middle East tensions de-escalate, the focus will return to more fundamental concerns for investors such as tariffs, earnings, the federal deficit and President Trump’s One Big Beautiful Bill,” said Chris Brigati, chief investment officer at SWBC, in a Tuesday note. Despite plenty of headwinds, including the possibility of reignited inflation from higher tariffs this summer, some Wall Street analysts believe stocks still have room to rise.