On Wednesday, the S&P 500 Index closed up 1.05%, the Dow Jones Industrial Average rose by 0.69%, and the Nasdaq 100 Index climbed 1.73%, reaching a new record high. This market uptick occurred after President Trump announced the extension of a ceasefire with Iran for 3 to 5 days following the close of Tuesday’s market, alongside strong earnings reports from companies like Boeing and GE Vernova.
WTI crude oil prices increased by over 3% as tensions escalated in the Strait of Hormuz, where Iran seized two ships for “endangering maritime security.” The strait is a critical transit route for about 20% of the world’s oil and liquefied natural gas. Additionally, U.S. mortgage applications rose by 7.9% in the week ending April 17, with the average 30-year fixed mortgage rate decreasing to 6.35% from 6.42%.
In earnings news, 82% of reported S&P 500 companies exceeded Q1 earnings estimates, contributing to projections of a 12% year-over-year earnings increase in the index. Meanwhile, a 1% chance for a 25 bp hike in the FOMC rate at the upcoming policy meeting has been discounted. Overseas markets displayed mixed results, with the Euro Stoxx 50 falling 0.41% while China’s Shanghai Composite and Japan’s Nikkei 225 rose 0.52% and 0.40%, respectively.
