NEW YORK, April 16 (Xinhua) -- U.S. stocks closed higher on Thursday, with the S&P 500 and Nasdaq Composite reaching fresh highs, as investors welcomed a new ceasefire agreement between Israel and Lebanon.
The Dow Jones Industrial Average rose 0.24 percent to 48,578.72. The S&P 500 added 0.26 percent to a new record close of 7,041.28. The Nasdaq Composite Index increased by 0.36 percent to 24,102.7, also hitting a new all-time high.
Seven of the 11 primary S&P 500 sectors ended in positive territory, led by energy and real estate with gains of 1.55 percent and 1.01 percent, respectively. Health care and industrials were the main laggards, declining 0.77 percent and 0.49 percent.
Stocks received a boost after U.S. President Donald Trump confirmed he had spoken with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu. Trump said that Israel and Lebanon had agreed to a 10-day ceasefire, which took effect at 5 p.m. Eastern Time on Thursday.
Meanwhile, former Cleveland Federal Reserve President Loretta Mester said the Fed was right to adopt a "wait and see" approach on monetary policy given the uncertainty surrounding the lingering effects of the recent oil shock.
"It all really depends on what's going to happen in the Middle East," Mester told CNBC at the Semafor World Economy conference in Washington, D.C. "I think the Fed is wise to be on hold now and to wait until we get more information on how things play out."
Oil prices rose despite the ceasefire news. West Texas Intermediate crude for May delivery climbed 3.4 U.S. dollars, or 3.72 percent, to settle at 94.69 dollars per barrel on the New York Mercantile Exchange. Brent crude for June delivery added 4.46 dollars, or 4.7 percent, to settle at 99.39 dollars per barrel on the London ICE Futures Exchange.
Shares of the "Magnificent Seven" technology giants ended mixed, led by a 2.2 percent advance in Microsoft. Tesla slipped 0.78 percent.
PepsiCo Inc. rose more than 2 percent. Netflix Inc. shares ticked higher ahead of its quarterly results due after the market close.
