S&P 500 hits first intraday record high since US-Iran war.

The S&P 500 touched an intraday ⁠record ⁠high on Wednesday, its first ⁠since the U.S.-Iran conflict began, as hopes of a de-escalation ​in the war and robust earnings expectations drew investors back into risk assets.

Reaching a fresh record ‌during an active geopolitical crisis ‌marked a shift in market positioning, with traders appearing more willing to price in ⁠less severe ⁠escalation risks, at least in the near term.

U.S. President Donald Trump ​has said talks with Iran to end the war could soon resume and result in a deal, after weekend talks in Islamabad collapsed.

Equity markets had fallen sharply last month when hostilities erupted, ​unleashing a historic shock to oil markets and reviving concerns about inflation and the ⁠outlook ⁠for U.S. interest rates.

The ⁠S&P 500 ​slid as much as 9% after the conflict broke out on February 28, stopping short ​of confirming a correction. ⁠The Nasdaq and Dow Jones Industrial Average both confirmed a correction, which is usually defined as an index closing at least 10% below a recent record high.

Markets have also drawn support from expectations of a strong corporate earnings season. Executives at big banks said ⁠the U.S. consumer remained resilient despite the oil shock, and the pipeline for ⁠deals and IPOs was robust.

Analysts expect S&P 500 companies to earn a combined $605.1 billion for the first three months of the year, up from $598.7 billion forecast at the start of the quarter, according to data compiled by LSEG.

A string of brokerages have viewed the selloff as an opportunity to snap up equities at a bargain as the conflict brought valuations down to more reasonable levels.

But the prospect of renewed escalation in the conflict continues to loom, with ⁠any flare-up likely to test the market’s recent confidence.

And even if risks stemming from geopolitics fade, concerns that dominated sentiment before the war could re-emerge, particularly fears about disruption linked to artificial intelligence.

Private credit firms have also been contending ​with redemption risk as nervous investors head for exits.

World Liberty Financial, the ⁠crypto ⁠venture co-founded by President Trump and his sons, released ⁠a new proposal Wednesday that would prevent early investors from trading tokens – 80% of their holdings are currently locked by the ​firm – for two years, followed by an additional two-year vesting period, according to a statement posted on its governance forum.

The measure, which will be subjected to a vote in one ‌week, means early investors holding 17 billion tokens ‌won’t have the ability to trade all of their tokens until 2030, a year after the president is scheduled to leave office. ”This proposal was designed to optimally ensure long-term ⁠participation in our ecosystem ⁠and help ensure healthy market supply,” said World Liberty Financial spokesman David Wachsman, in a statement to ​Reuters. 

The strictures would also apply to World Liberty tokens held personally by the project’s founders, which includes the president and his three sons, along with an additional year of vesting and the deletion or “burn” of 10% of their tokens. It did not, though, change the terms of the project’s token sales, which send 75% of all new token proceeds to the Trump family. ​Asked whether World Liberty would continue the sale of new tokens, Wachsman replied, “Stay tuned to World Liberty’s official X account for updates.”

The new proposal comes ⁠amidst ⁠complaints from investors who say the company ⁠has frozen their funds while extracting ​hundreds of millions of dollars for itself. The Trump family has already made more than $1 billion from World Liberty, according to a Reuters analysis. ​Many early investors told Reuters they had been ⁠hoping for a payday, too.