Nasdaq Hits Record Intraday High as U.S.-Iran Ceasefire Signals, Strong Earnings Lift Stocks

Korea Economic Daily

Summary

Signs of ceasefire commitment between the U.S. and Iran and solid corporate earnings helped New York stocks open higher.
The Nasdaq hit an intraday record, while the S&P 500 and the Dow Jones Industrial Average also moved higher.
Bitcoin and Ether both advanced, while international oil prices and Treasury yields declined.

Forecast Trend Report by Period

U.S. stocks opened higher on May 5 as indications that the U.S. and Iran remained committed to a ceasefire sent oil prices lower, while a run of solid corporate earnings also supported sentiment. Bitcoin climbed above $81,000.

As of 10 a.m. in New York, the S&P 500 was up 0.68%. The Nasdaq rose 0.91% after climbing as much as 1.1% earlier in the session to an intraday record of 25,335.40. The Dow Jones Industrial Average gained 0.46%.

West Texas Intermediate crude for June delivery fell 3.9% from the previous day to $102.19 a barrel. Brent crude for July delivery, the international benchmark, dropped 2.7% to $111.26.

The 30-year Treasury yield, which had risen above 5% a day earlier, slipped 2 basis points to 5.002%, though it remained above that level. The 10-year yield fell 2 basis points to 4.426%, and the two-year yield declined 2 basis points to 3.942%.

Bitcoin gained 2% to $81,520 after moving above $81,000. Ether rose 1.9% to $2,393.

The ceasefire between the U.S. and Iran remained fragile after fresh attacks in the Strait of Hormuz a day earlier. Still, Defense Secretary Pete Hegseth said on May 5 that the ceasefire was "definitely holding" and that two U.S. merchant ships and destroyers had passed safely through the strait.

Iranian Foreign Minister Abbas Araghchi said talks were making progress. He also said the U.S. and the United Arab Emirates should remain vigilant to avoid "falling back into a quagmire."

U.S. companies also turned in stronger-than-expected quarterly results.

Pfizer shares rose after the company reported first-quarter profit and revenue that beat estimates and raised its outlook for the year. Anheuser-Busch InBev jumped 8% after first-quarter results topped expectations. Palantir Technologies fell even after posting its biggest first-quarter earnings increase since listing and raising its forecast.

A day earlier, the United Arab Emirates said it had been hit by Iranian drone and missile attacks, putting the fragile ceasefire agreement between Washington and Tehran at risk. U.S. stock indexes fell in response.

Kim Jung-a, guest reporter, Hankyung.com, kja@hankyung.com