Stock markets rebounded Wednesday, ending a two-day decline for major indexes after President Donald Trump announced an indefinite extension of the Iran ceasefire, though questions persist about lasting peace negotiations.
The ceasefire extension came at the request of Pakistani intermediaries, Trump stated. Despite this development, the U.S. Navy continues its blockade of Iranian ports while Iran has captured two vessels in the strategically important Strait of Hormuz.
The waterway carries approximately 20% of the world’s oil supply, making its status a critical concern for investors and a key issue in ongoing negotiations. Iran’s parliament speaker and chief negotiator, Mohammad Baqer Qalibaf, indicated that a comprehensive ceasefire would only be meaningful if the blockade ends.
Markets have surged in recent weeks on hopes for a potential peace agreement, with the Nasdaq breaking a 13-session winning streak 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,” commented 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.”
Market performance showed the S&P 500 climbing 73.78 points, or 1.03%, closing at 7,137.12, while the Nasdaq jumped 393.55 points, or 1.62%, finishing at 24,653.52. The Dow Jones gained 333.42 points, or 0.68%, reaching 49,482.80.
Corporate earnings for the first quarter are currently showing growth of approximately 14%, based on LSEG data.
Inflation concerns persist as oil prices remain close to $100 per barrel with potential for further increases.
Technology stocks led the market rally, with the S&P 500 tech sector advancing roughly 2% to become the top performer among the 11 major sectors. Semiconductor companies drove much of the gains, including Micron Technology, which reached a new all-time high.
The Philadelphia Semiconductor Index achieved an intraday record for the 11th consecutive session and extended its winning streak to 16 days – the longest in its history.
Seagate’s stock price increased following Barclays’ upgrade of the data storage company to “overweight” status.
Strong quarterly results have helped calm worries about consumer spending power despite higher energy costs from the Iran conflict.
Goldman Sachs data shows S&P 500 earnings per share projections for 2026 and 2027 have increased by 4% since late January.
GE Vernova led the S&P 500 after the power equipment manufacturer increased its yearly revenue outlook. Boston Scientific shares also surged following better-than-expected first-quarter performance.
Boeing stock gained ground after reporting a quarterly loss smaller than analysts predicted, providing significant support to the Dow.
United Airlines faced headwinds after projecting second-quarter and full-year earnings below Wall Street expectations as elevated jet fuel costs pressure profit margins and create uncertainty for the near future.
Several major companies including Tesla, Texas Instruments, and Southwest Airlines are scheduled to release earnings after market close.
Spirit Airlines shares more than doubled in over-the-counter trading following a Wall Street Journal report suggesting the Trump administration is nearing an agreement to assist the struggling budget airline.
