Wall Street rises on Iran ceasefire extension and solid earnings

NEW YORK, April 22 (Reuters) – U.S. stocks climbed on Wednesday to snap a two-day skid for the S&P 500 and Nasdaq, after U.S. President Donald Trump extended the ceasefire with Iran, although uncertainty remained over whether it would result in any firm peace talks.

Trump said the indefinite extension of the ceasefire followed a request by Pakistani mediators. However, the U.S. Navy’s blockade of Iranian ports remained in effect, and Iran seized two ships in the Strait of Hormuz.

The opening of the waterway, responsible for about 20% of global oil supply, remains a major unknown for investors and has been one of the sticking points in the negotiations. Iran’s ​parliament speaker and ​top negotiator, Mohammad Baqer Qalibaf, said a full ceasefire only made sense if the blockade was lifted.

Stocks have rallied in recent weeks on the belief that a peace deal could be on the horizon, with the Nasdaq snapping a streak of 13 straight daily gains on Monday.

“Everyone’s kind of sick of it… clearly, the market is looking for a beneficial outcome or some kind of decent outcome here,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.

“Earnings have been good – now, will they continue to be good if we continue to be at war – it’s going to lose a little bit of its oomph. That said, in my world, there’s still tremendous value, there’s a lot of really cheap stuff out there.”

According to preliminary data, the S&P 500 gained 73.78 points, or 1.03%, to end at 7,137.12 points, while the Nasdaq Composite gained 393.55 points, or 1.62%, to 24,653.52. The Dow Jones Industrial Average rose 333.42 points, or 0.68%, to 49,482.80.

First-quarter earnings growth is tracking at about 14%, according to LSEG data.

However, risks of an inflation flare-up remain, with oil prices hovering near the $100-a-barrel mark and potentially moving higher.

The S&P 500 technology index climbed about 2% and was the best performing of the 11 major S&P sectors, led by gains in chip stocks such as Micron Technology, which surged to close at a record.

The Philadelphia SE Semiconductor Index hit an intraday record for an 11th straight session and notched its 16th straight day of gains – its longest streak ever.

Seagate rose after Barclays upgraded the data storage firm’s rating to “overweight”.

EARNINGS LIFT SENTIMENT

A strong start to earnings season has eased concerns about the health of the U.S. consumer despite rising energy prices from the Iran war.

S&P 500 EPS estimates for 2026 and 2027 have risen by 4% since late January, according to data from Goldman Sachs.

GE Vernova surged as the best performer on the benchmark S&P index after the power equipment maker raised its annual revenue forecast. Medical device maker Boston Scientific’s shares jumped after its first-quarter results.

Shares of planemaker Boeing advanced after a smaller-than-expected quarterly loss, and were among the biggest boosts to the Dow.

United Airlines, however, stumbled after forecasting second-quarter and full-year profits below Wall Street estimates as higher jet fuel prices squeeze margins and cloud its near-term outlook.

EV giant Tesla, chipmaker Texas Instruments and Southwest Airlines are among the companies expected to report after the market closes.

Shares of Spirit Airlines, which trades over the counter, more than doubled following a Wall Street Journal report that said the Trump administration was close to a deal to rescue the embattled low-cost carrier.

(Reporting by Chuck Mikolajczak; additional reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Devika Syamnath and Aurora Ellis)