US-Iran Ceasefire Extension Propels Nasdaq and S&P 500 to Record Highs

Wall Street surged on Wednesday, with the Nasdaq and S&P 500 both securing new record closing highs. The rally effectively erased losses from the previous two trading sessions, driven by a combination of geopolitical developments and corporate strength. The primary catalyst was President Donald Trump's announcement of a ceasefire extension with Iran. While the administration continues to maintain a maritime blockade of Iranian ports, the decision to hold off on direct military strikes provided a necessary risk-on signal to equity traders. However, the situation remains volatile; Iran dismissed the extension as meaningless and reported the seizure of two container ships in the Strait of Hormuz. In terms of price action, the Nasdaq climbed 1.6% to 24,657.57, while the S&P 500 rose 1.1% to 7,137.90. The Dow Jones Industrial Average also ended higher, gaining 0.7% to close at 49,490.03. Technology sectors led the charge, with the Philadelphia Semiconductor Index jumping 2.7% and the Dow Jones U.S. Software Index rising 2.3%. Beyond geopolitics, a solid start to the earnings season has reinforced investor confidence. Analysts suggest that expectations for continued double-digit earnings growth are helping justify elevated equity valuations despite persistent macro risks. Not all sectors participated in the rally. United Airlines (UAL) plummeted 5.6% after issuing disappointing forward guidance, despite reporting first-quarter results that beat expectations. Meanwhile, global markets showed a divergence, with European indices closing lower and Asia-Pacific regions delivering mixed results. The 10-year Treasury yield remained relatively flat, ending the session at 4.294%.