Wall Street’s S&P 500 closed at a record 7,137.90 on Wednesday, extending a rally that defies persistent geopolitical tensions and mixed economic signals as corporate earnings power gains across global markets.
The milestone follows record intraday highs in Japan’s Nikkei 225, which briefly touched 60,013.98 before profit-taking trimmed gains to 0.31% lower, and South Korea’s Kospi, which advanced 1.58% to an all-time high of 6,538.72. Both markets credited the extended U.S.-Iran ceasefire for boosting investor sentiment alongside strong first-quarter corporate results.
In the United States, seven of the 11 GICS sectors finished higher on Wednesday, led by information technology stocks rising 2.31%. Communication services and energy followed with gains of 1.41% and 1.14%, respectively, while real estate slipped 0.69% as the day’s weakest performer.
Technology leadership extended to ETFs, with large-cap tech’s XLK ETF poised for a historic 16th straight win and the SOXX semiconductor index ETF maintaining a ten-day streak of intraday record highs. Individual tech stocks including AMD, Cisco, Dell and Texas Instruments as well reached fresh intraday peaks.
Corporate earnings drove much of the momentum. Tesla shares initially jumped 4% after reporting first-quarter adjusted earnings of 41 cents per share, beating the 37 cents expected by analysts, though gains faded to a 1% decline in extended trading. IBM slipped nearly 7% after failing to raise full-year guidance despite posting an earnings beat.
In South Korea, Samsung Electronics shares hit a new intraday record of 227,000 won as labor tensions mounted, with unions expecting over 30,000 workers to attend a rally ahead of a planned strike next month. The country’s economy grew 1.7% in the first quarter, exceeding Reuters’ estimate of 1.0% and rebounding from a 0.2% contraction in the prior period.
For more on this story, see Nasdaq Hits 10-Day Winning Streak as Tech Boom Fuels Market Rally.
Japan’s manufacturing activity expanded at its fastest pace in four years in April, according to the S&P Global flash Purchasing Managers’ Index, as firms increased output amid supply concerns tied to Middle East tensions. SoftBank Group Corp gained over 6% after a Bloomberg report said This proves seeking a $10 billion margin loan backed by its OpenAI holdings to fund AI expansion.
Oil prices rose modestly, with West Texas Intermediate futures up 0.49% to $93.42 per barrel and Brent crude adding 0.28% to $102.20 per barrel, reflecting continued focus on the Strait of Hormuz amid the tenuous Iran-U.S. Ceasefire.
Regional markets showed divergence: Australia’s S&P/ASX 200 fell 0.76%, mainland China’s CSI300 rose 0.35%, and Hong Kong’s Hang Seng index declined 0.51% ahead of March inflation data.
Analysts note the rally’s resilience stems from a shift away from abject fear since late March, when expectations grew that the U.S. And Iran would avoid a worst-case economic scenario. Oil prices, which spiked to roughly $119 per barrel during peak war fears, have since pulled back to around $100 as the ceasefire holds, reducing inflationary pressures that previously pressured interest rates and equity valuations.
The S&P 500’s recovery from a nearly 10% decline below its prior record last month underscores investor patience, with the index rewarding those who stayed invested by not only recouping losses but forging new highs — a pattern repeated throughout its history during periods of uncertainty.
Why are markets hitting records despite the Iran war still ongoing?
Investors are focusing on corporate earnings, which remain strong enough to justify higher stock valuations, while the tenuous ceasefire has reduced fears of a worst-case oil shock and inflation spike that previously weighed on markets.
Which sectors are leading the current market rally?
Information technology stocks are leading with a 2.31% gain, followed by communication services at 1.41% and energy at 1.14%, while real estate is the weakest sector at -0.69%.
How are Asian markets reacting to the U.S.-Iran ceasefire?
Japan’s Nikkei 225 and South Korea’s Kospi both reached all-time intraday highs, driven by the ceasefire boosting sentiment alongside strong corporate earnings and, in South Korea’s case, better-than-expected first-quarter GDP growth of 1.7%.
