The S&P 500 Index rose by 1.08%, the Dow Jones Industrial Average increased by 1.31%, and the Nasdaq 100 Index surged by 1.66% on Wednesday, following a significant drop in crude oil prices, which fell over 5%. This market recovery comes amid expectations of a potential deal to resolve the Iran conflict, contributing to lower inflation expectations and a 10-year Treasury yield decrease to 4.57%, down by 10 basis points.
In corporate news, semiconductor stocks rallied, with Nvidia’s shares increasing over 1% ahead of its earnings report, which is expected to show a substantial 80% rise in Q1 sales. Overall, 83% of S&P 500 companies that have reported earnings for Q1 have exceeded estimates, with an average projected earnings growth of 12% year-over-year. Conversely, mortgage applications fell by 2.3% in the week ending May 1, as the average 30-year fixed mortgage rate rose to 6.56%.
Internationally, stock markets were mixed, with the Euro Stoxx 50 climbing 2.13% while Japan’s Nikkei dropped 1.23%. In the commodities sector, WTI crude prices remain volatile due to ongoing developments in the Middle East, with Goldman Sachs estimating significant drawdowns of nearly 500 million barrels from global stockpiles due to disruptions.
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