Quick overview

---

U.S. stocks rallied sharply on Wednesday, lifted by the extension of the ceasefire between the United States and Iran, while investors also focused on the ongoing first-quarter earnings season.

In this context, major New York indices closed with strong gains and hit fresh all-time highs, despite a backdrop still shaped by geopolitical uncertainty.

The Dow Jones Industrial Average rose 0.69% to 49,490.77 points, the S&P 500 gained 1.03% to 7,137.12, and the Nasdaq Composite jumped 1.64% to 24,657.57.

Middle East ceasefire boosts sentiment

The day’s momentum was driven by Donald Trump’s decision to extend the ceasefire with Iran for two more weeks, following the collapse of recent peace talks.

The announcement came after reports that Vice President J. D. Vance canceled a planned trip to Pakistan and that Iran had opted out of further negotiations.

Still, Trump left the door open for renewed dialogue, saying talks could resume in the coming days—helping support investor optimism.

However, officials in Tehran have maintained a firm stance, and there has been no official confirmation of a new round of negotiations, leaving tensions in the region unresolved.

Oil surge revives inflation concerns

At the same time, crude prices moved higher again. Brent crude climbed above $100 per barrel, driven by the Middle East conflict.

The rebound in oil has reignited concerns in markets, as it could fuel global inflation, weigh on economic growth, and complicate central banks’ rate outlook.

Strong retail sales in the U.S.

On the macro front, U.S. retail sales surprised to the upside. In March, the indicator rose 1.7%, marking the largest increase in a year.

Much of the gain was driven by a 15.5% jump in fuel spending amid higher energy prices. Excluding that category, sales rose a more modest 0.6%.

Economists caution, however, that part of this strength may be temporary, supported by tax refunds and a pull-forward in consumer spending.

Mixed corporate earnings

On the corporate side, earnings season brought mixed reactions:

• United Airlines fell 5.5% after issuing weaker-than-expected guidance.
• GE Vernova surged more than 13.5% after raising its revenue outlook.
• AT&T slipped 0.4% despite adding more subscribers than expected.
• Boeing gained 5.5% after reporting a smaller-than-expected loss.
• Tesla traded slightly higher ahead of its earnings release.

Markets between geopolitics and fundamentals

After recovering pre-conflict levels, markets appear to be pricing in a less adverse scenario in the Middle East.

Still, analysts warn that volatility is likely to persist, driven by the evolution of negotiations, oil price dynamics, and the trajectory of global inflation.

For now, investors are betting that the worst of the conflict may be over—but uncertainty remains a key factor shaping market direction.