By Stephen Culp NEW YORK, April 15 (Reuters) - The S&P 500 and the Nasdaq both logged record closing highs on Wednesday as investors assessed developments in the U.S.-Iran conflict and turned their
S&P 500, Nasdaq Achieve Record Closes as Markets Assess Middle East Tensions
By Stephen Culp
Market Overview and Key Developments
NEW YORK, April 15 (Reuters) - The S&P 500 and the Nasdaq both logged record closing highs on Wednesday as investors assessed developments in the U.S.-Iran conflict and turned their focus to corporate earnings.
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Recommended Reading
Here are a few articles I recommend to help you make sense of what happened in markets today.
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U.S.-Iran Conflict and Diplomatic Efforts
U.S. President Donald Trump said the war on Iran was nearing its conclusion amid a diplomatic push to continue peace talks -
IMF Warnings on Energy Subsidies
The International Monetary Fund cautioned countries against implementing broad fuel subsidies to cope with war-related energy shock -
Bank of America Earnings
Bank of America beat first-quarter profit estimates as market volatility boosted trading revenue to a record -
Morgan Stanley Results
Morgan Stanley, benefiting from a surge in dealmaking and record equities trading revenue, also beat first-quarter profit expectations -
Federal Reserve Policy Outlook
Cleveland Fed President Beth Hammack said that while she sees no immediate need for the Fed to change its target rate, rate cuts or even hikes are possible down the road
Today's Key Market Moves
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Stocks
Tech shares boosted the Nasdaq and helped boost the S&P 500 to a record closing high, while European shares dipped as investors gauged Middle East developments, earnings -
Sectors/Shares
Of the 11 major sectors in the S&P 500, four ended green, led by tech shares. The S&P 500 Software & Services index, having suffered a months-long period of weakness on AI disruption fears, was a clear outperformer, rising 4.3% -
FX
The dollar was essentially flat on a range-bound day -
Bonds
Benchmark Treasury yields rose as investors weighed Trump's assurances that the war could end soon -
Commodities/Metals
U.S. WTI crude settled essentially flat and Brent settled slightly higher, while gold drifted lower as investors assessed the latest signals from the U.S.-Iran situation
Today's Talking Points
Record Highs Amid Geopolitical Tensions
* S&P 500, Nasdaq reached their first record closing highs since the U.S.-Iran conflict began
Market Sentiment
Hopes of de-escalation and robust earnings expectations pushed the indexes to all-time closing highs, reassuring investors that a bull market remains intact.
Reaching those records during an active geopolitical crisis signified a shift in market positioning as traders appeared more willing to price in less severe escalation risks in the near term.
Allbirds' Strategic Pivot
* Shares of Allbirds soared 582.3% after announcing a move from footwear to AI computing infrastructure
Company Strategy
In an unusual pivot, the San Francisco-based company said it would execute a $50 million convertible financing agreement with an institutional investor, the proceeds of which will be used to acquire graphics processing units (GPUs).
Trump and the Federal Reserve
* Trump threatens to fire Powell if he doesn't quit Fed board
Leadership Uncertainty
Trump has threatened to fire Federal Reserve Chair Jerome Powell from his separate seat on the central bank's Board of Governors if he does not relinquish the post when his term as Fed chief ends on May 15.
The administration's threats against Powell, including an ongoing criminal investigation, could delay Senate confirmation of Kevin Warsh, Trump's pick to succeed Powell.
What Could Move Markets Tomorrow?
- Developments in the Middle East
- Energy market moves
- Social media posts from Trump
- U.S. weekly jobless claims
- U.S. industrial output (March)
- UK GDP (February)
- UK industrial output (February)
- Euro zone consumer prices (March)
- Austria, Italy, Poland, Croatia CPI (March)
- Federal Reserve policymakers slated to speak: New York Fed President John Williams, Fed Board Governor Stephen Miran
- Companies on deck to report first-quarter earnings tomorrow include Netflix, U.S. Bancorp, Travelers Companies and PepsiCo, among others
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Disclaimer
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
