Stocks jumped to record highs on Thursday as tensions between Iran and the U.S. eased for the time being, with tech shares outperforming.

The Dow Jones Industrial Average closed 211.81 points higher, or 0.7% at 28,956.90, inching closer to 29,000. The S&P 500 climbed 0.7% to 3,274.70 while the Nasdaq Composite gained 0.8% to end at 9,203.43.

Apple shares jumped 2.1% to a record high after Chinese government data showed that iPhone sales rose 18% in December in the country. The S&P 500 tech sector rose 1.1%, led by a 2.4% gain in AMD shares. The chipmaker rose after an analyst at Mizuho Securities upgraded them to buy from neutral, citing a potentially stronger server market in 2020.

Goldman Sachs climbed 2.1% to boost the Dow after Bank of America upgraded the bank to buy from neutral, citing an attractive valuation and the benefits of a possible global economic rebound. Boeing, meanwhile, gained 1.5% after President Donald Trump said he doesn't believe a 737 crash in Iran was due to a mechanical error.

Tensions between Iran and the U.S. simmered down after Trump said Wednesday Iran appeared to be "standing down" after firing a barrage of missiles at military bases housing U.S. troops in Iraq.

"We do not want to be dismissive of the political ramification of recent events, but we doubt that they will have a long-lasting effect on the trajectory of markets unless matters develop well beyond where they stand today," said Michael Shaoul, chairman and CEO of Marketfield Asset Management, in a note.

The attack was in retaliation for the U.S. killing of Iranian Gen. Qasem Soleimani. Trump also suggested the U.S. would be open to negotiations with the Islamic Republic. "We must all work together toward making a deal with Iran that makes the world a safer and more peaceful place," Trump said.