US stocks moved higher on Wednesday, snapping a recent losing streak as investors responded positively to an extended ceasefire between the United States and Iran, while a strong start to earnings season provided additional support.
The Nasdaq Composite climbed 1.64%, touching a fresh all-time intraday high, while the S&P 500 advanced about 1% to close at 7,137.90.
The Dow Jones Industrial Average rose 340 points, or 0.69%, ending near 49,490.03.
Markets have regained momentum in recent weeks, with the S&P 500 erasing losses tied to the Iran conflict and the Nasdaq recently ending a 13-day winning streak.
Ceasefire extension lifts sentiment despite uncertainty
Investor sentiment improved after President Donald Trump extended a two-week ceasefire with Iran, citing internal divisions within Tehran’s leadership and requests from Pakistani mediators.
“Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal,” Trump said in a Truth Social post.
“I have therefore directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other,” he added.
However, the path toward a lasting resolution remains uncertain. Reports indicated that Vice President JD Vance’s planned trip to Pakistan for renewed talks was paused due to a lack of commitment from Tehran. Iranian state media also suggested negotiations would be a “waste of time.”
Tensions remain elevated in the Strait of Hormuz, where Iran reportedly seized two container ships. The waterway, which handles about 20% of global oil supply, remains a focal point of concern, especially as the US naval blockade continues.
Earnings strength underpins market rally
Beyond geopolitics, a strong earnings season has been a key driver of market gains.
More than 80% of S&P 500 companies reporting so far have exceeded expectations, according to FactSet data, while first-quarter earnings growth is tracking at about 14%, based on LSEG figures.
Several companies posted notable gains following earnings updates. Boeing shares rose about 5% after reporting a smaller-than-expected loss, while GE Vernova surged around 12% after lifting its annual revenue outlook.
Technology stocks led sector performance, with the S&P 500 technology index rising about 2%.
Semiconductor stocks also extended their rally, with the Philadelphia SE Semiconductor Index hitting an intraday record for an 11th consecutive session.
Oil prices and risks remain in focus
Despite the rally in equities, risks tied to the geopolitical backdrop persist. Oil prices climbed as tensions in the Middle East continued, with Brent crude trading above $100 per barrel.
The continued closure of the Strait of Hormuz and uncertainty over whether the ceasefire will lead to substantive negotiations have kept investors cautious about the potential for supply disruptions and inflationary pressures.
Analysts noted that while markets appear to be increasingly looking past the conflict in the near term, a prolonged escalation could weigh on earnings momentum and broader economic stability.
As markets balance optimism over earnings with uncertainty surrounding geopolitics, investor focus is likely to remain split between corporate performance and developments in the Middle East.
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