The Dow Jones Industrial Average recorded its first intraday record high since the outbreak of the war between the United States and Iran, supported by the artificial intelligence-driven rally and growing investor optimism regarding negotiations aimed at ending the conflict.

The benchmark industrial index climbed to an intraday record of 50,712.24 points before trading around 0.6% higher.

The move pushed the index above its previous peak of 50,512.79 recorded on February 10, after it had already reclaimed the 50,000-point level earlier this week.

The Dow Jones had officially entered correction territory during March after closing more than 10% below its record highs amid concerns over the global economic consequences of the Iran war, which triggered a broad selloff on Wall Street.

Art Hogan, chief market strategist at B. Riley Wealth, said: The closer we get to an exit from this war, the more confidence markets gain, especially after a very strong earnings season and upgraded expectations for the rest of the year.

The AI-driven boom, together with the fragile ceasefire in the Middle East, helped markets recover from March losses, with both the SP 500 and the Nasdaq Composite reaching new record highs in mid-April.

However, the Dow Jones, which includes a larger weighting of industrial companies, lagged somewhat behind the rally as technology stocks led market gains.

The Dow Jones which includes 30 companies and was first established in 1896 is a price-weighted index, unlike other indices that are weighted by market capitalization, making it less sensitive to surges in large technology stocks.

Among the strongest contributors to the indexs performance this quarter were shares of Cisco Systems, Amazon, and Nvidia, especially after Nvidias sales guidance exceeded market expectations this week.

Meanwhile, shares of Chevron, McDonald's, and Nike were among the weakest performers during the same period.

Strong first-quarter earnings from US companies also reassured investors despite geopolitical tensions, as forecasts for US corporate earnings over the next 12 months have risen by more than 10% since the beginning of the year, according to data from LSEG Datastream.