The S&P 500 and Nasdaq Composite finished at record levels on Wednesday after President Donald Trump extended the U.S. ceasefire with Iran, while upbeat earnings reports also lifted sentiment.
The broad market index added 1.05% to finish at 7,137.90, while the tech-heavy Nasdaq added 1.64% to settle at 24,657.57. The latter had hit a new all-time intraday high in the session. The S&P 500 had erased all of its Iran war losses last week. Meanwhile, the Dow Jones Industrial Average advanced 340.65 points, or 0.69%, to end the day at 49,490.03.
Shortly after Tuesday's close, Trump extended a two-week U.S. ceasefire, saying it was warranted due to Tehran's "seriously fractured" government.
"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," the president 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.
But the timeline remains dicey, after a lack of commitment from Tehran reportedly resulted in a pause in Vice President JD Vance's trip to join peace talks. Iranian state media also reported that negotiators from Tehran said they wouldn't appear as talks with the U.S. were a "waste of time."
Even after Trump extended the ceasefire, Iran's navy said Wednesday that it had seized two container ships in the Strait of Hormuz as tensions persist in the key waterway that's still essentially closed. Oil prices rose, with international benchmark Brent crude futures surpassing $100 a barrel.
But with the Nasdaq trading at all-time high levels, Ben Fulton of WEBs Investments believes investors are officially starting to look past the developments in the Middle East. Indeed, U.S. equities are going to be able to more easily move higher than international markets from here on out, especially given the expected tail wind from earnings, he said.
"A week ago, I said, 'The risk was on the upside.' The market moves so much that now I look and go, 'No, the risk is on the downside,'" the firm's CEO said in an interview. "It's time to put it in the rearview mirror. They got to stay the course."
Earnings season has been off to a strong start. Boeing shares rose 5.5% after the company reported a smaller-than-expected loss for the first quarter. In addition, GE Vernova shares jumped nearly 14% after the company's first-quarter revenue topped expectations. The two are among the more than 80% of S&P 500 companies that have reported so far that have surpassed expectations, according to FactSet data.
