Both the S&P 500 and the NASDAQ Composite closed at fresh record highs today, while the Russell 2000 also ended at a new closing peak as investors embraced a stronger risk-on tone.

The rally was fueled in part by growing hopes for a potential de-escalation in the Iran conflict. Reports circulated that a proposed one-page memorandum of understanding could eventually serve as the framework for a broader nuclear agreement down the road. Adding to the optimism were hopes that the Strait of Hormuz could reopen more fully to shipping traffic, easing concerns over global energy supply disruptions.

That shift in sentiment sparked a sharp move lower in oil prices. June crude oil futures fell $7.18, or -7.02%, to settle near $95.09 as traders priced in reduced geopolitical risk and the possibility of improved supply flows.

The NASDAQ and Russell 2000 index has been up 4 of last 5 trading days. The S&P is up 3 of the last 4 days. The Russell 2000 is up 5.38% over the last 5 days, while the NASDAQ index is up 4.76%..

Since bottoming on March 30, the