US equity markets ended Wednesday on a strong note, with major indexes reaching record levels after President Donald Trump extended a ceasefire with Iran, easing immediate geopolitical concerns. Robust corporate earnings further reinforced investor confidence.
The Dow Jones Industrial Average advanced 340 points, or 0.69%, closing at 49,490.03. The S&P 500 climbed 1.05% to a record 7,137.90, while the Nasdaq Composite surged 1.64%, also finishing at an all-time high.
Market volatility declined, with the VIX index dropping nearly 3%, reflecting reduced investor anxiety.
The rally followed Trump’s announcement of an extended truce with Iran, citing internal divisions within Tehran and diplomatic appeals for additional time. While maintaining a military blockade, Washington signaled readiness to continue negotiations once Iran presents a unified position.
Despite the extension, uncertainty persists. Reports indicated that US Vice President JD Vance postponed plans to participate in talks in Pakistan after Iran showed limited engagement. Iranian officials also expressed skepticism toward negotiations, calling them unproductive.
Geopolitical tensions remained visible in the Strait of Hormuz, where Iran reportedly seized two container vessels, highlighting ongoing risks in a critical global shipping route. Oil prices responded by rising, with Brent crude surpassing $100 per barrel.
Corporate earnings provided additional momentum. Boeing shares jumped 5.5% after reporting a narrower-than-expected quarterly loss, while GE Vernova surged nearly 14% on stronger-than-anticipated revenue.
In contrast, European markets closed lower. The Stoxx 600 index slipped 0.35%, while Germany’s DAX, the UK’s FTSE 100, France’s CAC 40, Italy’s FTSE MIB, and Spain’s IBEX 35 all recorded modest declines.
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