The U.S. stock market closed higher on Thursday, with all three major indices posting gains. The S&P 500 rose 0.17%, the Nasdaq Composite gained 0.09%, and the Dow Jones Industrial Average climbed 0.55%. The broad-based rally was driven by a retreat in oil prices, which pulled down energy stocks and supported the broader market. Additionally, optimism surrounding potential progress in the US-Iran peace talks and the release of hostages contributed to the positive sentiment. However, the rebound in tech stocks after Nvidia's earnings report lost steam, as investors digested the company's mixed results and adjusted expectations for the sector.

The market's performance was characterized by a risk-on tone, with investors favoring growth-oriented sectors and sectors sensitive to oil prices. The Dow's record high, driven by strong performances in financials, industrials, and consumer discretionary stocks, reflected this sentiment. Meanwhile, the Nasdaq's modest gain was influenced by a mixed bag of results from tech giants, with Nvidia, Intuit, and Spotify among the notable movers. The S&P 500's gain was more evenly distributed, with contributions from various sectors, including healthcare, utilities, and materials. The market's focus on the upcoming Walmart earnings report and the potential impact of the Hormuz Strait situation on oil prices also played a role in shaping the day's trading.