Wall Street ended sharply higher on Wednesday, with benchmark indices scaling fresh record highs, as a temporary extension of the US-Iran ceasefire and a strong start to earnings season lifted investor sentiment.
The Nasdaq Composite led the gains, surging 1.6% to close at an all-time high, driven by strength in semiconductor stocks. The S&P 500 rose more than 1% to also notch a record finish, while the Dow Jones Industrial Average climbed around 0.7%, recovering from the previous session’s losses.
Markets found support after US President Donald Trump extended the ceasefire with Iran by two weeks, offering a brief respite to investors amid escalating geopolitical tensions. The move came even as uncertainty lingers over the prospects of a lasting agreement, with diplomatic efforts facing setbacks and signals of disengagement from Tehran.
Despite the extension, tensions in the region remained elevated. Iran’s navy reportedly seized two container ships in the Strait of Hormuz, underscoring continued risks in the critical oil transit route. The situation kept energy markets on edge, with Brent crude briefly crossing the $100 per barrel mark as traders priced in potential supply disruptions.
Also read: Wall Street opens higher; Dow jumps 385 pts as Trump extends Iran truce, oil spikes
Investor focus, however, appeared to shift towards corporate earnings, which have broadly exceeded expectations so far. More than 80% of S&P 500 companies that have reported have beaten estimates, according to FactSet data, reinforcing confidence in underlying corporate strength.
On the stock-specific front, Boeing shares jumped about 5% after reporting a narrower-than-expected quarterly loss, aided by higher aircraft deliveries. GE Vernova surged 12% after posting better-than-expected revenue for the first quarter, adding to the upbeat earnings momentum.
The rally also comes ahead of key results from Tesla, with investors closely watching megacap earnings for further direction.
Even as geopolitical risks persist, some market participants believe equities are beginning to look past the Middle East turmoil. However, caution remains as valuations stretch near record highs and uncertainties around global developments continue to linger.
