From Bloomberg Markets and Finance.
Troy Gayeski, Chief Market Strategist at Future Standard, discusses investment opportunities in volatile markets.
A slew of strong corporate earnings lifted stocks, which also rose on hopes Iran will join talks with the US to end a war that has rattled markets and jeopardized the outlook for global economic growth.
Following a brief pause in a monthly rally that’s already set to be the best since 2020, the S&P 500 hovered near its all-time highs. UnitedHealth Group Inc. jumped 9.8% on a bullish forecast. Also bolstering sentiment was the announcement that Amazon.com Inc. is investing an additional $5 billion in Anthropic PBC and may inject $20 billion more over time. Brent oil wavered near $95.
Peacemaking efforts have helped equity traders brush off concerns about the potential economic fallout from the Iran war amid corporate resilience. About 82% of the S&P 500 companies reporting first-quarter results have beaten analyst earnings estimates so far, according to data compiled by Bloomberg.
“After months of sideways action, US stocks have surged to record highs,” said Bret Kenwell at eToro. “Part of that reflects hopes for further de-escalation in the Middle East, but it may also signal growing optimism around earnings. If companies continue to deliver, it could reinforce investors’ confidence that this rally still has room to run.”
The US is waiting on whether Iran will take part in a second round of talks before a ceasefire expires on Wednesday. Three vessels — two cargo ships and a fuel tanker — appeared to have crossed the Strait of Hormuz on Tuesday as US and Iranian blockades remained in place.
Meantime, Kevin Warsh, President Donald Trump’s nominee to chair the Federal Reserve, is appearing before the Senate Banking Committee for a confirmation hearing.
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