Global equity markets advanced on Wednesday amid signs of easing tensions between the United States and Iran. Dow Jones futures gained 0.17% to trade near 49,500 during European hours, while the S&P 500 rose 0.28% to around 7,310 and Nasdaq 100 futures climbed 0.70% above 28,330, reflecting increased optimism that a deal with Iran could be within reach after Washington announced the end of offensive operations, reaffirmed the ceasefire, and temporarily paused efforts to assist stranded vessels exiting the Strait of Hormuz [1]. European stocks also rallied, with the pan-European Stoxx 600 index up 1.1%, London's FTSE 100 rising 1.2%, and France's Cac 40 and Germany's Dax each up 1.1% at the open. All major European sectors except oil and gas traded in the green as oil prices fell on hopes of a negotiated settlement to the Iran war [2].
The market optimism was further fueled by President Donald Trump’s announcement that he is pausing “Project Freedom,” the U.S. plan to guide ships through the Strait of Hormuz, citing 'Great Progress' toward a 'Complete and Final Agreement with Representatives of Iran' [2]. This follows recent volatility after the United Arab Emirates came under attack from Iranian drones and missiles, and the White House reported sinking Iranian boats in the Strait of Hormuz [2].
Corporate earnings also contributed to the positive sentiment. Advanced Micro Devices (AMD) reported Q1 revenue of $10.25 billion, up 38% year-over-year, driven by strong AI infrastructure demand. The company raised its Q2 revenue guidance to $11.2 billion, with data center sales jumping 57%. AMD shares surged nearly 15% in after-hours trading [1]. Arista Networks (ANET) posted Q1 2026 revenue of $2.71 billion, a 35% YoY increase, and raised its revenue outlook, highlighting ambitious AI-related sales targets despite supply chain constraints [1]. Pfizer (PFE) exceeded expectations with Q1 2026 revenue of $14.5 billion and EPS of $0.75, while focusing on oncology and metabolic diseases and addressing a potential $17 billion patent cliff by 2030 [1].
In Asia, South Korea’s Kospi index jumped 6.5% to a new peak above 7,000, with Samsung Electronics (005930) rising over 15% to surpass $1 trillion in market capitalization and SK Hynix (000660) gaining more than 10% [2]. Novo Nordisk (NOVO) raised its annual profit guidance after reporting U.S. sales of its Wegovy weight-loss pill at 2.26 billion kroner, beating analyst estimates of 1.16 billion kroner [2]. Pandora shares rose 9% after Q1 sales exceeded expectations, despite challenges from U.S. tariffs and higher silver prices [2].
Looking ahead, traders are focused on upcoming earnings from AppLovin, The Walt Disney Company, Uber Technologies, CVS Health, DoorDash, Next, Ørsted, and Flutter, as well as the release of the ADP private payrolls report for April [1][2].
CONCLUSION
Markets responded positively to signs of de-escalation in US-Iran tensions and a strong wave of corporate earnings, with major indices in the US, Europe, and Asia posting gains. Falling oil prices and upbeat guidance from leading companies further supported investor sentiment. Attention now turns to upcoming earnings reports and economic data for further market direction.