Wall Street gains as Iran ceasefire extension and robust earnings bring relief
Wall Street’s main indexes climbed on Wednesday after President Donald Trump extended the ceasefire with Iran, even as uncertainty remained over whether Tehran and U.S. ally Israel would honor the truce.
Trump said the indefinite extension of the ceasefire followed a request by Pakistani mediators. However, the U.S. Navy’s blockade of Iranian ports remained in effect, and Iran seized two ships in the Strait of Hormuz.
The opening of the waterway, responsible for about 20% of global oil supply, remains a major unknown for investors and has been one of the sticking points in the negotiations.
The bullish sentiment despite the uncertainty points to a market desperate to cling to good news, and reflects investor belief that despite setbacks, the war will be settled at the negotiating table instead of the battlefield.
At 11:25 a.m. ET, the Dow Jones Industrial Average rose 381.18 points, or 0.78%, to 49,530.56, the S&P 500 gained 61.56 points, or 0.87%, to 7,125.15 and the Nasdaq Composite gained 313.74 points, or 1.29%, to 24,573.70.
“It’s possible that we see a continuation of negative headlines, ultimatums and deadlines for negotiations, but that doesn’t mean that stocks will react meaningfully to each one, since markets already priced in the worst of the conflict during the lows made back in March,” said Rick Gardner, chief investment officer, RGA Investments.
However, risks of an inflation flare-up remain, with oil prices near the $100-a-barrel mark.
“Equity markets appear to be pricing in a rapid resolution — and conditions on the ground suggest that may be premature,” said Larry Adam, chief investment officer at Raymond James.
Information technology stocks added 1.6% and were the biggest boost to the S&P 500. Energy stocks also rose 0.8%.
The Philadelphia SE Semiconductor Index hit a fresh peak and was on track for its 16th straight day of gains — its longest streak ever.
Micron Technology shares jumped 5.6%, while Seagate rose 2.5% after Barclays upgraded the data storage firm’s rating to “overweight”.
A strong run of earnings so far has reassured Wall Street about the health of the U.S. consumer, the growth engine of the economy.
S&P 500 EPS estimates for 2026 and 2027 have risen by 4% since late January, according to data from Goldman Sachs.
GE Vernova advanced 12.5% after the power equipment maker raised its annual revenue forecast. Medical device maker Boston Scientific’s shares were up 8.3% after first-quarter results.
Shares of planemaker Boeing rose 3.1% after a smaller-than-expected quarterly loss, and were among the biggest boosts on the Dow.
United Airlines, however, declined 6.4% after forecasting second-quarter and full-year profits below Wall Street estimates as higher jet fuel prices squeeze margins and cloud its near-term outlook.
EV giant Tesla, chipmaker Texas Instruments and Southwest Airlines will report after markets close.
Robinhood gained 2.3% after the retail trading platform’s venture fund invested $75 million in ChatGPT maker OpenAI.
Shares of Spirit Airlines, which trades over the counter, more than tripled to $1.85 following a Wall Street Journal report that said the Trump administration was close to a deal to rescue the embattled low-cost carrier.
Advancing issues outnumbered decliners by a 1.82-to-1 ratio on the NYSE and by a 2.11-to-1 ratio on the Nasdaq.
The S&P 500 posted 29 new 52-week highs and one new low while the Nasdaq Composite recorded 97 new highs and 40 new lows.