S&P, Nasdaq close at records on Iran ceasefire extension, earnings

[NEW YORK] US stocks climbed on Wednesday (Apr 22) to send the S&P 500 and Nasdaq to closing records, after US President Donald Trump extended the ceasefire with Iran, with a round of solid corporate earnings providing additional support for optimism.

Trump said that the indefinite extension of the ceasefire followed a request by Pakistani mediators. However, the US 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 per cent of global oil supply, remains a major unknown for investors and has been one of the sticking points in the negotiations. Iran’s parliament speaker and top negotiator, Mohammad Baqer Qalibaf, said a full ceasefire only made sense if the blockade was lifted.

Stocks have rallied in recent weeks on the belief that a peace deal could be on the horizon, with the Nasdaq snapping a streak of 13 straight daily gains on Monday.

“Everyone’s kind of sick of it... clearly, the market is looking for a beneficial outcome or some kind of decent outcome here,” said Stephen Massocca, senior vice-president at Wedbush Securities in San Francisco.

“Earnings have been good – now, will they continue to be good if we continue to be at war – it’s going to lose a little bit of its oomph. That said, in my world, there’s still tremendous value, there’s a lot of really cheap stuff out there.”

The Dow Jones Industrial Average rose 340.65 points, or 0.69 per cent, to 49,490.03, the S&P 500 gained 73.89 points, or 1.05 per cent, to 7,137.90 and the Nasdaq Composite gained 397.60 points, or 1.64 per cent, to 24,657.57.

First-quarter earnings growth is tracking at about 14 per cent, according to LSEG data. However, risks of an inflation flare-up remain, with oil prices hovering near the US$100-a-barrel mark and potentially moving higher.

The S&P 500 technology index climbed about 2.31 per cent and was the best performing of the 11 major S&P sectors, led by gains in chip stocks such as Micron Technology, which surged 8.48 per cent to close at a record US$487.48. The tech index has risen in 15 of the past 16 sessions.

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Wall Street opens higher on ceasefire extension relief

The Philadelphia SE Semiconductor Index hit an intraday record for an 11th straight session and notched its 16th straight day of gains – its longest streak ever.

Seagate rose 3.57 per cent after Barclays upgraded the data storage firm’s rating to “overweight”.

Earnings lift sentiment

A strong start to earnings season has eased concerns about the health of the US consumer despite rising energy prices from the Iran war.

S&P 500 EPS estimates for 2026 and 2027 have risen by 4 per cent since late January, according to data from Goldman Sachs. GE Vernova surged 13.75 per cent as the best performer on the benchmark S&P index after the power equipment maker raised its annual revenue forecast.

Medical device maker Boston Scientific’s shares jumped 8.99 per cent after its first-quarter results. Shares of planemaker Boeing advanced 5.53 per cent after a smaller-than-expected quarterly loss and was the biggest boost to the Dow.

United Airlines, however, stumbled 5.58 per cent 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. After the closing bell, electric automaker Tesla climbed 4.6 per cent after reporting a surprise positive free cash flow in the first quarter.

Shares of Spirit Airlines, which trades over the counter, more than doubled to US$1.50 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 1.61-to-1 ratio on the NYSE and by a 1.81-to-1 ratio on the Nasdaq. The S&P 500 posted 31 new 52-week highs and five new lows while the Nasdaq Composite recorded 118 new highs and 57 new lows. Volume on US exchanges was 16.08 billion shares, compared with the 18.3 billion average for the full session over the last 20 trading days. REUTERS