US stocks close higher after Trump extends ceasefire with Iran, earnings boost sentiment

US stock markets closed higher Wednesday after President Donald Trump extended a ceasefire with Iran, while stronger-than-expected corporate earnings also supported investor sentiment.

The Dow rose 0.69% or 340.65 points to end the day at 49,490.03.

The S&P 500 added 1.05%, or 73.89 points, to an all-time high of 7,137.90, while the Nasdaq composite rose 1.64%, or 397.60 points, to 4,657.57.

The Volatility Index (VIX), often called the market’s “fear index,” fell 2.97% to 18.92.

Trump announced late Tuesday that he was extending a ceasefire with Iran, pointing to divisions within Tehran’s leadership and requests from Pakistani officials for more time for diplomacy.

Trump said he ordered the US military to maintain a blockade and remain prepared, while extending the ceasefire until Iran’s leaders present a unified proposal and talks conclude.

Despite the extension, uncertainty about the diplomatic path remained.

US media reports said Vice President JD Vance’s planned trip to join peace talks in Pakistan was paused after Tehran did not commit to the process, while Iranian state media said negotiators viewed talks with Washington as a “waste of time.”

Tensions also persisted in the Strait of Hormuz, where Iran’s navy said Wednesday it seized two container ships, underscoring continued risks in the strategically vital waterway.

Oil prices moved higher amid the renewed tensions, with Brent crude futures climbing above $100 per barrel.

Corporate earnings also added support to the New York Stock Exchange.

Boeing shares rose 5.5% after the company posted a smaller-than-expected first-quarter loss, while GE Vernova surged 13.75% after reporting revenue above forecasts.

European markets

European stocks, however, closed the midweek lower, with the pan-European Stoxx 600 index falling 0.35%, or 2.15 points, to 613.88.

Germany’s DAX lost 0.31% to end at 24,194.9, while the UK's FTSE 100 fell 0.21% to 10,476.46.

France’s CAC 40 dropped 0.96% to 8,156.43, Italy's FTSE MIB slipped 0.25% to 47,785.46, and Spain's IBEX 35 fell 0.75% to 18,006.4.