U.S. stocks climbed on Wednesday after U.S. President Donald Trump extended the ceasefire with Iran, even as uncertainty remained over whether it would result in any durable peace talks. 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, and 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 223.25 points, or 0.45%, to 49,372.63, the S&P 500 gained 54.65 points, or 0.77%, to 7,118.66 and the Nasdaq Composite gained 314.94 points, or 1.30%, to 24,574.91.
First-quarter earnings growth is tracking at about 14%, according to LSEG data.
However, risks of an inflation flare-up remain, with oil prices hovering near the $100-a-barrel mark and potentially moving higher.
The S&P 500 technology index climbed nearly 2% and was the best performing of the 11 major S&P sectors, led by gains in chip stocks such as Micron Technology, which surged about 8%.
The Philadelphia SE Semiconductor Index hit an intraday record for an 11th straight session and was poised for its 16th straight day of gains – its longest streak ever.
Seagate rose 3% after Barclays upgraded the data storage firm’s rating to “overweight”.
Earnings lift sentiment
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 surged nearly 13% 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 8.6% after first-quarter results.
Shares of planemaker Boeing advanced 5.3% after a smaller-than-expected quarterly loss, and were the biggest lift to the Dow.
United Airlines, however, stumbled 6.5% 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 are among notable companies expected to report after the market closes.
Shares of Spirit Airlines, which trades over the counter, more than tripled to $2.15 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 1.44-to-1 ratio on the NYSE and by a 1.57-to-1 ratio on the Nasdaq.
The S&P 500 posted 31 new 52-week highs and four new lows while the Nasdaq Composite recorded 109 new highs and 53 new lows.
This article originally appeared on The Detroit News: Wall Street rises on Iran ceasefire extension and solid earnings
Reporting by Avinash P and Niket Nishant, Reuters / The Detroit News
USA TODAY Network via Reuters Connect
