Stocks rally on ceasefire hopes

U.S. stocks climbed on April 22, with the S&P 500 and Nasdaq ending at record highs as investors reacted to an extended Iran ceasefire and stronger earnings. (cnbc.com) The S&P 500 rose 73.78 points, or 1.03%, to 7,137.12, and the Nasdaq Composite gained 393.55 points, or 1.62%, to 24,653.52. The Dow Jones Industrial Average added 333.42 points, or 0.68%, to 49,482.80. (economictimes.indiatimes.com) President Donald Trump said the ceasefire with Iran was extended indefinitely after a request from Pakistani mediators, easing some of the pressure that had pushed investors out of riskier assets earlier in the week. CNBC reported the S&P 500 and Nasdaq had both fallen for two straight sessions before Wednesday’s rebound. (cnbc.com) The market move came even as the conflict remained active in key shipping lanes. Reuters reported that the U.S. Navy blockade of Iranian ports stayed in place and Iran seized two ships in the Strait of Hormuz on April 22. (virginiabusiness.com) That mix of relief and caution has defined trading in April. A ceasefire can lower fears of supply shocks and inflation, but disruptions around Hormuz still keep oil and freight risks in play for investors watching consumer prices and Federal Reserve policy. (cnbc.com) Corporate results gave traders another reason to buy. Reuters reported first-quarter earnings growth was tracking at about 14% on April 22, while FactSet’s blended estimate for S&P 500 earnings growth stood at 13.2%, which would mark a sixth straight quarter of double-digit growth if sustained. (virginiabusiness.com) (factset.com) Technology shares led the advance. Reuters said the S&P 500 technology sector rose about 2%, and CNBC said upbeat earnings reports helped lift sentiment as investors rotated back into growth stocks. (virginiabusiness.com) (cnbc.com) Adobe was one of the names in focus after announcing a $25 billion stock buyback, with its shares closing at $255.94 on April 22, up 3.54% for the day. Tesla closed at $387.51, up 0.28% before slipping in extended trading after its earnings report. (google.com) (finance.yahoo.com) (wsj.com) By the close, Wall Street had treated the ceasefire extension as enough to buy time, not enough to erase risk. The records in the S&P 500 and Nasdaq showed investors were still willing to pay for earnings growth while the geopolitical picture remained unsettled. (cnbc.com)