Wall Street Rallies on Extended Iran Ceasefire, Earnings Optimism; S&P 500 and Nasdaq Hit Records

Traders watch charts on the floor of the New York Stock Exchange. [AP Photo/Yonhap]

President Donald Trump’s extension of a ceasefire with Iran, combined with optimism about corporate earnings, helped lift U.S. stocks to a strong finish on April 22. While Middle East tensions have not fully eased, investors focused more on the ceasefire holding and signs of improving profits than on the immediate risk of a wider war.

The Dow Jones Industrial Average rose 340.65 points, or 0.69%, to 49,490.03. The S&P 500 gained 73.89 points, or 1.05%, to 7,137.90, and the Nasdaq climbed 397.60 points, or 1.64%, to 24,657.57. The S&P 500 and Nasdaq both closed at record highs.

One driver was the ceasefire extension. Reuters reported that after Pakistan-mediated talks, Trump extended the ceasefire until Iran’s proposal is submitted and consultations are completed. The move did not mean a peace deal was imminent. With the U.S. blockade on Iran continuing and Iran maintaining a hard-line response, markets priced in some chance of de-escalation but did not fully dismiss regional risks.

Earnings expectations also supported sentiment. LSEG estimates U.S. companies’ first-quarter profit growth at about 14%. Technology and semiconductor shares led the advance. Micron Technology jumped 8.48%, and the S&P 500 technology sector index rose 2.31%. The Philadelphia Semiconductor Index extended its winning streak to 16 sessions. GE Vernova gained after raising its annual revenue outlook, and Boeing rose after reporting a smaller-than-expected loss. United Airlines fell 5.58% on concerns tied to its earnings outlook.

Middle East uncertainty remained. The AP reported that Iran fired on three vessels in the Strait of Hormuz and seized two. With the U.S. maintaining its blockade and maritime clashes adding to tensions, uncertainty around negotiations increased again. Oil prices, trading around $100 a barrel, also remained a potential source of stock-market volatility.

Stephen Massocca, a senior vice president at Wedbush Securities, told Reuters that “corporate earnings have been good so far,” adding that “if the war drags on, that trend could weaken, but there are still many undervalued stocks in the market.”

* This article has been translated by AI.

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