Nasdaq Hits Record, S&P 500 Rises After US Extends Iran Ceasefire
US stocks rallied on Wednesday (April 22nd) after President Donald Trump extended the US ceasefire with Iran, while solid corporate earnings reports boosted sentiment. The Nasdaq Composite rose 1.3% and briefly set a new intraday record, the S&P 500 added 0.8%, and the Dow Jones Industrial Average rose 320 points, or 0.7%.
The ceasefire extension was announced shortly after Tuesday's close. Trump said the pause in attacks was extended to give Iran time to present a "more unified" proposal, while emphasizing that the blockade remains in place and the US military remains on alert.
For the market, this move reduces the risk of near-term escalation and bolsters risk appetite—as evidenced by the strengthening of the indexes, particularly growth stocks. However, the fact that the blockade remains in place means energy risks have not completely disappeared, so volatility related to the Strait of Hormuz could still influence inflation expectations and the direction of interest rates.
The next variables to monitor are the clarity of Iran's proposal and the schedule for further talks, the status of the blockade and shipping flows in Hormuz, and the continuation of the earnings season, which will determine whether the equity rally can sustain itself.
Source: Newsmaker.id
