U.S. equities advanced decisively on Wednesday, with major indices posting fresh record closes as investor sentiment improved following President Donald Trump’s announcement of an indefinite extension to the U.S. ceasefire with Iran. The S&P 500 rose 1.05% to close at 7,137.90, while the Nasdaq Composite surged 1.64% to 24,657.57, both establishing new intraday and closing highs. The Dow Jones Industrial Average gained a more modest 0.69%, finishing at 49,490.03.
The ceasefire extension provided temporary relief amid ongoing geopolitical tensions in the Middle East. However, the situation remains precarious. Peace negotiations have stalled, with both sides expressing skepticism about the prospects for a durable agreement. Concurrently, incidents in the Strait of Hormuz — including reports of Iranian gunboats firing on vessels and supertankers challenging the U.S. blockade — contributed to renewed upward pressure on energy prices. Brent crude surpassed $100 per barrel, climbing approximately 3%, while West Texas Intermediate (WTI) crude rose above $92 per barrel.
Corporate Earnings Drive Selective Gains
Earnings season continued to shape market narratives. Boeing (BA) delivered stronger-than-expected first-quarter results, reporting revenue of $22.2 billion against consensus estimates of $21.79 billion. The company’s adjusted loss per share of $0.20 significantly outperformed the anticipated $0.76 loss. Improved aircraft deliveries and a reduction in cash burn supported investor confidence, propelling shares higher by over 5%. Boeing’s performance signals progress in its ongoing operational turnaround under new leadership.
GE Vernova (GEV) stood out as one of the day’s top performers, advancing 13.59% to a record high of $1,126.01. The company raised its backlog projections after adding $13 billion in new orders over the past 90 days, now targeting $200 billion by 2027. Strong demand for gas turbines and robust growth in its services segment underscored the positive momentum.
Attention now shifts to Tesla (TSLA), which is scheduled to report earnings after the market close. As the final member of the “Magnificent Seven” to report this season, Tesla’s results are expected to influence broader technology and growth stock sentiment.
Notable Sector and Company Developments
Cannabis Sector Surge: Reports that the Trump administration is nearing a decision to reschedule marijuana to Schedule III triggered sharp gains across the industry. This potential reclassification would eliminate the punitive Section 280E tax provision, offering significant relief. Leading names including Canopy Growth, Curaleaf, Trulieve, and the AdvisorShares Pure Cannabis ETF rose approximately 20%, with Green Thumb Industries advancing over 13%.
Credit Scoring Disruption: Fair Isaac Corporation (FICO) shares plummeted more than 13% after Fannie Mae, Freddie Mac, and the Federal Housing Administration announced they would begin accepting alternative credit scoring models, including VantageScore 4.0 and the updated FICO 10T model. The move aims to reduce reliance on traditional FICO scores and incorporate alternative data such as rental payment history, potentially lowering costs for borrowers. FICO shares have declined nearly 50% year-to-date.
Transportation Anomaly: Avis Budget Group (CAR) continued its extraordinary short squeeze, now trading near $750 per share. Due to the price-weighted nature of the Dow Jones Transportation Average, CAR has disproportionately influenced the index’s recent performance, accounting for an estimated 66% of its one-month gains. Excluding CAR, the transports still reached a fresh high, supported by broad strength in names such as J.B. Hunt, Old Dominion Freight Line, and Ryder System.
Government Contract Win: Palantir Technologies (PLTR) rose over 3% following a $300 million agreement with the U.S. Department of Agriculture. The contract will deploy AI-driven software to streamline farmer reporting processes and enhance visibility into agricultural risks under the “One Farmer, One File” initiative.
Broader market leadership remained concentrated in technology and industrials. The Technology Select Sector SPDR ETF (XLK) extended its winning streak, while semiconductor stocks continued to set successive record highs.
Additional Corporate Updates
Best Buy (BBY) announced the departure of CEO Corie Barry at the end of the third quarter, with longtime insider Jason Bonfig named as her successor. SpaceX secured an option to acquire the AI coding startup Cursor for $60 billion later this year, further expanding its footprint in artificial intelligence tools. Separately, OpenAI plans to commit up to $1.5 billion to a new joint venture focused on accelerating enterprise adoption of its technology.
Outlook
While today’s record-setting session reflects renewed risk appetite and positive earnings momentum, persistent volatility in oil markets and unresolved geopolitical risks in the Strait of Hormuz warrant caution. Investors will closely monitor Tesla’s upcoming results, as well as any further developments regarding Iran and energy supply disruptions.
The market remains sensitive to headline risk, with energy costs and monetary policy implications continuing to influence forward expectations.