Stocks Get Close to Record Highs on Solid Earnings: Markets Wrap
(Bloomberg) — A slew of strong corporate profits lifted stocks a day after President Donald Trump extended a ceasefire with Iran, though attempts to resolve the conflict struggled without any signs that the key Strait of Hormuz will reopen soon. Oil gained.
The nearly 1% gain in the S&P 500 sent the gauge close to a record, with tech leading the charge. Boeing Co. jumped on solid first-quarter deliveries. Tesla Inc.’s results are due later Wednesday. Spirit Aviation Holdings Inc. soared on speculation the US is near a rescue deal. Cannabis shares rallied on news reports the Trump administration will ease marijuana restrictions.
Brent oil hit $102. Bitcoin topped $78,000. Bonds and the dollar wavered.
After Trump extended a truce with Iran, the key question is whether the two sides can reach a deal. Tensions remain high as Tehran keeps a tight grip on Hormuz, controlling passage through the trade route and firing on ships. Meantime, the US refuses to lift its blockade on Iranian-linked vessels.
Trump extended the ceasefire with Iran for three to five days, not indefinitely, Fox News reported. A second round of talks may be coming as soon as Friday, according to a New York Post report. Iran currently has no plans to negotiate with the US at the end of this week, Tasnim news agency said.
What we have is a situation that’s technically “calm and chaotic” at the same time, according to Kenny Polcari at SlateStone Wealth.
“While the Iran conflict is ongoing, my sense is that investors are already starting to look through it and focus on what really matters,” he said. “We’ve seen this movie before — the headlines hit, the market reacts, volatility spikes, and then it settles down and refocuses on fundamentals.”
Strong corporate profits, the revival of the artificial-intelligence trade and an otherwise resilient economy have buoyed stocks despite lingering geopolitical risks. About 81% of the S&P 500 companies reporting first-quarter results have beaten analyst earnings estimates so far, according to data compiled by Bloomberg.
While there is still uncertainty and saber rattling over the Iran conflict, markets are forward-looking, noted Rick Gardner at RGA Investments.
“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,” he said.
Corporate Highlights:
Alphabet Inc.’s Google Cloud division unveiled the latest generation of its tensor processing unit, or TPU, a homegrown chip that’s designed to make AI computing services faster and more efficient. Adobe Inc. will buy back as much as $25 billion of its stock following a steady decline for more than two years over investor concerns that artificial intelligence will disrupt the company’s business. United Airlines Holdings Inc. Chief Executive Officer Scott Kirby sidestepped questions about a potential merger with American Airlines Group Inc., while acknowledging that the current climate of high costs and struggling rivals might offer opportunities for deals. GE Vernova Inc., one of the world’s only makers of big natural-gas turbines, jumped after its electrification unit sold more grid equipment, including substations and transformers, to data center customers in the first quarter than all of last year. Philip Morris International Inc.’s profit rose more than expected in the first quarter on sales of smoke-free products including heated tobacco and nicotine pouches. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.8% as of 1:08 p.m. New York time The Nasdaq 100 rose 1.4% The Dow Jones Industrial Average rose 0.6% The MSCI World Index rose 0.4% Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.3% to $1.1712 The British pound was little changed at $1.3512 The Japanese yen was little changed at 159.49 per dollar Cryptocurrencies
Bitcoin rose 4.2% to $78,915.98 Ether rose 3.4% to $2,393.75 Bonds
The yield on 10-year Treasuries was little changed at 4.29% Germany’s 10-year yield was little changed at 3.01% Britain’s 10-year yield advanced three basis points to 4.91% Commodities
West Texas Intermediate crude rose 3.9% to $93.16 a barrel Spot gold rose 0.3% to $4,734.63 an ounce ©2026 Bloomberg L.P.
