The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +1.05%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.69%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.73%.  June E-mini S&P futures (ESM26) rose +0.99%, and June E-mini Nasdaq futures (NQM26) rose +1.76%.

Stock indexes settled higher on Wednesday, with the Nasdaq 100 posting a new record high.  Stocks found support today as President Trump, after the markets closed on Tuesday, extended his ceasefire with Iran for three to five days.  Strong corporate earnings results also lifted stocks on Wednesday after GE Vernova, Boeing, and Masco reported better-than-expected Q1 earnings.  In addition, strength in chipmakers and AI-infrastructure stocks boosted the overall market on Wednesday. 

Planned talks between the US and Iran were called off on Tuesday, and President Trump said the US naval blockade of the Strait of Hormuz will remain. Iran said it will not reopen the strait or restart peace talks until the US blockade ends.

WTI crude oil prices (CLM26) rose more than +3% on Wednesday as the Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis.  Iran seized two ships on Wednesday in the strait for “endangering maritime security,” and the UK Navy said Islamic Revolutionary Guard Corps gunboats fired upon two other cargo ships.  The blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.  Iran has recently been able to export crude oil during the war, with exports of about 1.7 million bpd in March.

US MBA mortgage applications rose +7.9% in the week ended April 17, with the purchase mortgage sub-index up +10.1% and the refinancing sub-index up +5.8%.  The average 30-year fixed rate mortgage fell -7 bp to 6.35% from 6.42% in the prior week.

Earnings season continues this week.  So far, 82% of the 71 S&P 500 companies that reported Q1 earnings have beaten estimates.  Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence.  Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.

The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.

Overseas stock markets settled mixed on Wednesday.  The Euro Stoxx 50 fell to a 1-week low and closed down -0.41%.  China's Shanghai Composite climbed to a 5-week high and closed up +0.52%.  Japan's Nikkei Stock 225 rallied to an all-time high and closed up +0.40%.

Interest Rates

June 10-year T-notes (ZNM6) on Wednesday closed down -0.5 of a tick.  The 10-year T-note yield was unchanged at 4.292%.  T-notes gave up early gains on Wednesday after WTI crude oil prices rose by more than 3%, which raised inflation expectations and is bearish for T-notes.  Also, Wednesday’s stock rally reduced some safe-haven demand for T-notes.

T-notes initially moved higher on Wednesday on an increase in safe-haven demand after Iranian gunboats fired on two ships and seized two ships on Wednesday in the Strait of Hormuz, potentially leading to escalation of the US-Iran war.  Also, solid demand for the Treasury’s $13 billion auction of 20-year T-bonds was supportive of T-notes, as the auction had a bid-to-cover ratio of 2.68, above the 10-auction average of 2.65.

European government bond yields moved higher on Wednesday.  The 10-year German bund yield rose +0.5 bp to 3.008%.  The 10-year UK gilt yield rose to a 2-week high of 4.914% and finished up by +2.5 bp to 4.909%.

The Eurozone Apr consumer confidence index fell -4.2 to a 3.25-year low of -20.6, weaker than expectations of -17.2.

The German government today cut its 2026 GDP forecast to 0.5% from 1.0%, due to the effects of the US-Iran war.

ECB Governing Council member Martins Kazaks said there is no urgency for the ECB to raise interest rates from 2%, as the current data does not yet justify a move.

ECB Governing Council member Gediminas Simkus said the ECB shouldn't raise interest rates at its April meeting, but he can't rule out a rate hike later this year.

UK Mar CPI rose +3.3% y/y, right on expectations.  Mar core CPI rose +3.1% y/y, weaker than expectations of +3.2% y/y.

Swaps are discounting a 13% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.

US Stock Movers

The Magnificent Seven technology stocks moved higher on Wednesday, a supportive factor for the overall market.  Alphabet (GOOGL), Apple (AAPL), Amazon.com (AMZN), and Microsoft (MSFT) closed up more than +2%.  Also, Nvidia (NVDA) closed up more than +1%, Meta Platforms (META) closed up +0.88%, and Tesla (TSLA) closed up +0.28%. 

Chipmakers and AI-infrastructure stocks rallied on Wednesday, boosting the broader market.  ARM Holdings Plc (ARM) closed up more than +12% to lead gainers in the Nasdaq 100, and Micron Technology (MU) and Sandisk (SNDK) closed up more than +8%.  Also, Advanced Micro Devices (AMD) closed up more than +6%, and Broadcom (AVGO) closed up more than +5%.  In addition, Marvell Technology (MRVL) closed up more than +4%, and Seagate Technology Holdings Plc (STX) closed up more than +3%.  Finally, Lam Research (LRCX), Applied Materials (AMAT), and ON Semiconductor (ON) closed up more than +2%.

Cryptocurrency-exposed stocks rallied on Wednesday as Bitcoin (^BTCUSD) rose more than +4% to a 2.5-month high.  Strategy (MSTR) is up more than +9%, and Galaxy Digital Holdings (GLXY) closed up more than +7%.  Also, Riot Platforms (RIOT) closed up more than +6%, and Coinbase Global (COIN) and MARA Holdings (MARA) closed up more than +5%.  

Credit reporting agencies retreated on Wednesday after the US government announced steps to lower the cost of credit scores.  Equifax (EFX) closed down more than -7%, Fair Isaac (FICO) closed down more than -6%, and TransUnion (TRU) closed down more than -4%.

GE Vernova (GEV) closed up more than +13% to lead gainers in the S&P 500 after reporting Q1 revenue of $9.34 billion, above the consensus of $9.11 billion. 

Masco (MAS) closed up more than +10% after reporting Q1 net sales of $1.92 billion, stronger than the consensus of $1.84 billion. 

Boston Scientific (BSX) closed up more than +8% after reporting Q1 net sales of $5.20 billion, stronger than the consensus of $5.17 billion.

Intuitive Surgical (ISRG) closed up more than +7% after reporting Q1 adjusted EPS of $2.50, better than the consensus of $2.10, and raising its full-year adjusted gross margin forecast to 67.5%-68.5% from a prior estimate of 67%-68%, above the consensus of 67.4%. 

Boeing (BA) closed up more than +5% to lead gainers in the Dow Jones Industrials after reporting Q1 negative adjusted free cash flow of -$1.45 billion, smaller than the consensus of -$2.61 billion. 

Twilio (TWLO) closed up more than +3% after Bank of America Global Research double-upgraded the stock to buy from underperform with a price target of $190. 

UnitedHealth Group (UNH) closed up more than +2% after Argus Research upgraded the stock to buy from hold with a price target of $400.

Sonoco Products (SON) closed down more than -16% after reporting Q1 net sales of $1.68 billion, weaker than the consensus of $1.70 billion, and saying it sees full-year adjusted EPS at the low end of a $5.80 to $6.20 range, below the consensus of $5.92. 

TE Connectivity (TEL) closed down more than -9% to lead losers in the S&P 500 after reporting Q2 net sales of $4.74 billion, below the consensus of $4.77 billion. 

United Airlines Holdings (UAL) closed down more than -5% after cutting its full-year adjusted EPS estimate to $7.00 to $11.00 from a previous estimate of $12.00 to $14.00, the midpoint below the consensus of $9.08.

NVR Inc (NVR) closed down more than -4% after reporting Q1 EPS of $67.76, weaker than the consensus of $77.01.

Vertiv Holdings (VRT) closed down more than -2% after forecasting Q2 net sales of $3.25 billion to $3.45 billion, the midpoint below the consensus of $3.40 billion.

Earnings Reports(4/23/2026)

American Express Co (AXP), Ameriprise Financial Inc (AMP), Baker Hughes Co (BKR), Blackstone Inc (BX), CBRE Group Inc (CBRE), CenterPoint Energy Inc (CNP), Comcast Corp (CMCSA), Comfort Systems USA Inc (FIX), Digital Realty Trust Inc (DLR), Dover Corp (DOV), Dow Inc (DOW), Edwards Lifesciences Corp (EW), Erie Indemnity Co (ERIE), Freeport-McMoRan Inc (FCX), Hartford Insurance Group Inc/The (HIG), Honeywell International Inc (HON), Huntington Bancshares Inc/OH (HBAN), Intel Corp (INTC), Keurig Dr Pepper Inc (KDP), Lockheed Martin Corp (LMT), Nasdaq Inc (NDAQ), Newmont Corp (NEM), NextEra Energy Inc (NEE), PG&E Corp (PCG), Pool Corp (POOL), Principal Financial Group Inc (PFG), PulteGroup Inc (PHM), Roper Technologies Inc (ROP), Snap-on Inc (SNA), Thermo Fisher Scientific Inc (TMO), Union Pacific Corp (UNP), VeriSign Inc (VRSN), West Pharmaceutical Services Inc (WST).

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