(April 22): US stocks advanced on Wednesday as traders examined the state of play for the Middle East following President Donald Trump’s ceasefire extension with Iran and cheered corporate earnings.
The S&P 500 Index gained 0.7% at 9:54am in New York, with the gauge looking to bounce after two-straight sessions of declines. The Nasdaq 100 Index rose 0.8%, while Brent crude jumped 2.0% to US$100 per barrel. The Cboe Volatility Index hovered around 19.
“Mixed messages from Donald Trump, and an insistence that a US blockade of Iran will continue, mean investors are still playing a guessing game,” said Russ Mould, investment director at AJ Bell.
Trump told the New York Post that a second round of talks between the US and Iran may be possible as soon as Friday. The comment came after the two sides failed to meet for peace talks and the president extended a truce that was due to expire today.
While there seems no imminent return to fighting, there is still little sign the critical Strait of Hormuz will be reopened to oil and gas shipments soon. Iranian gunboats fired on two ships in the waterway on Wednesday.
“Markets are still navigating a fragile balance between improving sentiment and lingering geopolitical risk,” said Daniela Hathorn, senior market analyst at Capital.com. “While ceasefire headlines and periodic reopenings of the Strait of Hormuz have helped ease immediate supply fears, disruptions to flows continue to linger, keeping a residual risk premium embedded in energy markets.”
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Investor focus will shift to corporate earnings, with Tesla Inc. delivering results after the bell. The automaker will be the first of the Magnificent Seven to report, and Wall Street will be seeking evidence that Elon Musk’s artificial intelligence and robotics ventures justify the stock’s sky-high valuation.
Other names to report after the bell include Southwest Airlines Co, Lam Research Corp and Texas Instruments Inc.
In single-stock moves, Boeing Co gained 1.6% after the company reported lower-than-expected cash outflow as it delivered the most aircraft in the first quarter since 2019. GE Vernova Inc climbed 14% after the power equipment company reported revenue for the first quarter that topped estimates.
See also: US stock futures rise as Trump extends Iran truce
United Airlines Holdings Inc dropped 3.0% after the carrier reduced its adjusted earnings per share forecast for the year.
Uploaded by Magessan Varatharaja
