Hopes for a deal to revive the Strait of Hormuz led to a significant rally in global markets, with both the S&P 500 and Dow Jones Industrial Average topping previous records. The Nasdaq composite jumped 2.6%, and a key gauge of chipmakers saw its biggest four-day rally since 2020. This optimism was further fueled by a batch of solid corporate earnings reports.
Brent crude, the international standard, sank 5.3% to $79.36 per barrel, falling below $80 on bets that a deal would prevent major US airstrikes on Iran and ensure continued energy flows. This drop in oil prices helped ease Wall Street's worries about inflation, subsequently pulling down yields in the bond market and relaxing pressure on the overall economy.
Companies like Palantir Technologies surged 29.5% after reporting strong revenue growth and raising its full-year 2026 forecast. Caterpillar also climbed 5.6% after exceeding profit and revenue expectations, reporting over $20 billion in sales for the quarter. These results contributed to an expected nearly 50% growth in earnings per share for S&P 500 companies in the spring from a year earlier. However, Chipotle Mexican Grill fell 9.7% due to concerns over a salmonella outbreak.
