Markets rally on earnings
- US stock indexes hit fresh records after an Iran ceasefire extension and a stronger start to earnings season. - The S&P 500 and Nasdaq closed at record highs while some EPS estimates have risen about 4% since January. - Investors favored companies delivering durable guidance and margin resilience rather than one-off earnings boosts. (reuters.com)
U.S. stocks hit fresh records on Wednesday as stronger early earnings and an extended Iran ceasefire pushed investors back into riskier trades. (cnbc.com) The S&P 500 rose 1.05% to 7,137.90 and the Nasdaq Composite climbed 1.64% to 24,657.57, both record closes on April 22. The Dow Jones Industrial Average added 340.65 points, or 0.69%, to 49,490.03. (cnbc.com) President Donald Trump said late Tuesday that the United States would extend its ceasefire with Iran after a request from Pakistani officials. The U.S. military blockade stayed in place, and Iranian forces seized two container ships in the Strait of Hormuz on Wednesday. (usnews.com) (cnbc.com) That waterway carries about 20% of global oil supply, so traders have been treating every military update as an inflation signal as well as a foreign-policy one. Brent crude moved above $100 a barrel even as stocks rallied. (usnews.com) (cnbc.com) The other force was earnings. First-quarter profit growth for S&P 500 companies is tracking at about 14% by LSEG data, while FactSet’s April 17 report put blended first-quarter earnings growth at 13.2%. (usnews.com) (factset.com) Analysts have been lifting their longer-range numbers too. Goldman Sachs data cited by Reuters showed S&P 500 earnings-per-share estimates for 2026 and 2027 were up about 4% from late January. (usnews.com) The buying was concentrated in companies that paired profit beats with steadier outlooks. Boeing rose 5.5% after reporting a smaller first-quarter loss than expected, and GE Vernova jumped nearly 14% after first-quarter revenue topped estimates. (cnbc.com) Technology led the market higher. Reuters reported the S&P 500 technology sector gained about 2%, Micron Technology surged about 8%, and the Philadelphia Semiconductor Index hit an intraday record for an 11th straight session. (usnews.com) Not everyone read the rally as a clean all-clear. Iranian officials said talks with Washington were a “waste of time,” and market strategists told CNBC that with the Nasdaq already at all-time highs, the near-term risk had shifted from upside surprise to downside disappointment. (cnbc.com) For now, the market is trading as if profit forecasts can absorb oil near $100 and a ceasefire that still depends on diplomacy in the Gulf holding together. (usnews.com) (cnbc.com)
