Stocks are hitting record highs even as Iran war drags on. How long can it last?

The S&P 500 closed above 7,400 for the first time on May 11, 2026, gaining about 0.2% as stocks hit fresh record highs despite geopolitical risk from the Iran war. The rally has lifted the index nearly 17% from its March 30 low, driven by a narrow group of mega-cap winners. At the same time, the Cboe VIX spiked 6.9% to around 18.37, signaling elevated near-term volatility. Treasury yields and oil also rose (10-year ~4.41%, Brent topped $104), underscoring market caution even as equities push higher — a dynamic the article frames as a “mixed” market backdrop.