Stocks Rise as Ceasefire Holds, Earnings Take Center Stage – Europe Market Wrap
US stock futures moved higher after President Donald Trump extended the ceasefire with Iran indefinitely, while investors also turned their attention to a packed schedule of corporate earnings.
Brent crude briefly rose above $100 a barrel after planned talks in Islamabad failed to materialize, leaving the Strait of Hormuz largely closed. S&P 500 futures gained 0.5% following the index’s first consecutive decline this month.
European equities were mixed as first-quarter results came in unevenly. ASM International climbed to a record in Amsterdam after reporting strong demand for its chipmaking equipment.
Later Wednesday, Tesla will be a key focus among US earnings releases. Several semiconductor firms, including Texas Instruments and Lam Research, are also due to report, with the Philadelphia Semiconductor Index on track for its longest winning streak on record after 15 days of gains. Boeing is among industrial companies set to announce results.
Earnings season has started on a solid footing, with about 82% of the 71 S&P 500 companies that have reported so far beating expectations, according to compiled data. Shares tied to artificial intelligence have been particularly supported, as strong demand continues to drive optimism around the expansion of the technology.
In bond markets, European debt traded unevenly as oil’s rebound gathered pace. The yield on the 10-year US Treasury was little changed at 4.28%. The dollar slipped 0.2%, while gold climbed above $4,750 an ounce. Bitcoin rose more than 3%, briefly reaching its highest level since February.
Although equities remain close to record levels and earnings momentum is strong, some investors caution that volatility in oil markets is likely to persist, with no clear agreement yet to reopen the Strait of Hormuz. Iran’s Revolutionary Guard also seized two vessels on Wednesday, citing concerns over maritime security.
