U.S. stocks reached new record highs on Wednesday as a wave of strong first-quarter earnings from major corporations bolstered investor confidence, even as geopolitical tensions in the Middle East drove oil prices above $100 per barrel. The S&P 500 rose 1 percent to close at 7,137.90, surpassing its previous all-time high set last Friday. The Dow Jones Industrial Average added 340.65 points, or 0.7 percent, ending at 49,490.03, while the Nasdaq composite gained 1.6 percent to 24,657.57, also setting a new record.
General Electric’s energy unit, GE Vernova, led the gains with a 13.7 percent surge after reporting first-quarter profits that significantly exceeded analysts’ expectations. The company, which produces equipment for roughly a quarter of the world’s electricity generation, cited strong demand driven by the expansion of artificial intelligence technologies. GE Vernova also announced a jump in equipment orders for data centers to $2.4 billion during the quarter, surpassing its total orders from the previous year, and raised its full-year financial outlook.
Other blue-chip companies, including Boston Scientific, Boeing, and Philip Morris International, posted better-than-expected earnings results, with their stock prices increasing by 9 percent, 5.5 percent, and 7 percent, respectively. These positive earnings reports contributed to the S&P 500’s sustained rally, marking its 13th gain in the last 16 trading sessions.
Despite the broadly optimistic sentiment, uncertainty related to the ongoing conflict between the United States and Iran tempered market enthusiasm. Brent crude, the global benchmark for oil, climbed 3.5 percent to $101.91 a barrel amid concerns about disruptions to energy supplies from the Persian Gulf. The war has led to restricted shipping through the Strait of Hormuz, a critical transit route for oil tankers. On Wednesday, Iran fired on three vessels and seized two, escalating tensions in the region.
President Donald Trump recently extended a ceasefire but maintained a U.S. blockade of Iranian ports, aiming to limit Iran’s revenue from crude oil exports. This standoff has cast doubt on the prospects for negotiations to end the conflict and restore stability to oil shipments. Since the conflict began, Brent crude prices have risen sharply from around $70 per barrel, reflecting fears of prolonged supply interruptions. However, volatility in both oil and stock markets has moderated compared to earlier sharp swings, including Brent’s brief spike above $119 and a nearly 10 percent drop in the S&P 500 from its record high.
In other market developments, shares of Best Buy fell 4.6 percent after the company announced CEO Corie Barry’s departure. She will be succeeded by Jason Bonfig, the company’s chief customer, product, and fulfillment officer. Meanwhile, cannabis-related stocks surged following reports that the Trump administration is preparing to reclassify marijuana to a less restrictive category under federal law, a move expected to reduce regulatory and tax burdens on the industry. Tilray Brands jumped 14.2 percent, and Canopy Growth climbed 20.2 percent.
Internationally, stock indexes declined in Europe and experienced mixed results in Asia. Japan’s Nikkei 225 rose 0.4 percent, while Hong Kong’s Hang Seng dropped 1.2 percent. Treasury yields in the United States remained steady, with the 10-year yield holding at 4.30 percent despite rising oil prices.