Stan Choe
Updated ,first published
The US stock market rallied to more records after GE Vernova, Boston Scientific and other big companies joined the parade reporting fatter profits for the start of the year than analysts expected. But caution still hung over Wall Street, and oil prices rose on uncertainty about what will happen in the war with Iran.
The S&P 500 jumped 1 per cent and topped its prior all-time high set on Friday. The Dow Jones added 340 points, or 0.7 per cent, and the Nasdaq composite set its own record after jumping 1.6 per cent.
The Australian sharemarket is set to decline, with futures pointing to a loss of 38 points, or 0.4 per cent, at the open. The ASX lost 1.2 per cent on Wednesday. The Australian dollar was 0.1 per cent higher at US71.59ยข at 6.27am AEST.
GE Vernova flew 13.7 per cent higher after the company, whose products help generate about a quarter of the worldโs electricity, reported profit for the first three months of the year that blew past analystsโ expectations.
Like the broader stock market, GE Vernova is benefiting from the rise of artificial-intelligence technology, and its electrification business booked more equipment orders for data centres during the quarter, $US2.4 billion ($3.4 billion), than it did during all of last year. The company also raised its forecasts for revenue and other financial measures over the full year.
The vast majority of companies in the S&P 500 have so far been delivering results for the start of 2026 that have topped analystsโ expectations, even with the war in Iran driving up oil prices and uncertainty for the global economy. Such strong performances have helped the S&P 500 power higher, and the index recorded its 13th gain in its last 16 days.
Boston Scientific rallied 9 per cent, Boeing climbed 5.5 per cent, and Philip Morris International rose 7 per cent after all likewise delivered results for the latest quarter that were stronger than analysts expected.
Still, another rise in oil prices helped keep enthusiasm in check on Wall Street. The price for a barrel of Brent crude oil, the international standard, climbed 3.5 per cent to $101.91 on uncertainty about when the war with Iran could let up and allow petroleum to flow freely to customers from the Persian Gulf again.
The war has restricted traffic through the Strait of Hormuz, the narrow waterway off Iranโs coast that oil tankers typically use to exit the Persian Gulf. Iran fired on three ships in the strait and seized two of them on Wednesday.
A day earlier, US President Donald Trump extended a ceasefire but also said he was maintaining an American blockade of Iranian ports. The blockade keeps Iran from making money by selling its own crude oil.
The standoff over Iranโs closure of the strait and the US blockade raised doubts about when or if talks would resume to end the crisis.
Brent crude has shot up from roughly $US70 per barrel since before the war on worries about a long-term disruption to the flow of oil. But moves in both the oil and stock markets have become more modest in recent weeks, following vicious swings where Brentโs price briefly topped $US119 and the S&P 500 dropped nearly 10 per cent below its prior all-time high.
On the losing end of Wall Street Wednesday was Best Buy, which fell 4.6 per cent after the electronics retailer announced the departure of CEO Corie Barry. She will be replaced by longtime insider Jason Bonfig, the companyโs chief customer, product and fulfillment officer.
Stocks of cannabis companies rose amid reports that the Trump administration is preparing to reclassify marijuana as a less dangerous drug. Trump signed an executive order in December meant to speed up the Drug Enforcement Administrationโs process for reclassifying the drug, a move that would not make it legal for recreational use by adults nationwide, but could change how the drug is regulated and reduce a hefty tax burden on the cannabis industry.
Tilray Brands jumped 14.2 per cent, and Canopy Growth soared 20.2 per cent.
All told, the S&P 500 rose 73.89 points to 7,137.90. The Dow Jones Industrial Average added 340.65 to 49,490.03, and the Nasdaq composite climbed 397.60 to 24,657.57.
In stock markets abroad, indexes fell in Europe following a mixed finish in Asia. Japanโs Nikkei 225 rose 0.4 per cent, while Hong Kongโs Hang Seng sank 1.2 per cent.
In the bond market, Treasury yields held relatively steady despite the gain in oil prices. The yield on the 10-year Treasury remained at 4.30 per cent, where it was late Thursday.
A day before, it had climbed after Trumpโs nominee to chair the Federal Reserve, Kevin Warsh, said he never promised Trump he would cut interest rates even though Trump has been angrily calling for lower rates.
AP, Reuters
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