U.S. Stocks Approach Record Highs Amid Strong Earnings; Brent Crude Tops $100 Amid Iran Conflict

U.S. stock markets surged toward record highs on Wednesday, bolstered by strong earnings reports from major companies. The S&P 500 rose 0.9%, the Dow Jones Industrial Average increased by 317 points (0.7%), and the Nasdaq Composite climbed 1.3%.

GE Vernova led the gains, soaring 12.1% after reporting first-quarter profits that exceeded analysts' expectations. The company also noted a significant increase in data center equipment orders. Boston Scientific, Boeing, and Philip Morris International also reported better-than-expected earnings, contributing to the market's upward momentum.

Despite the positive earnings reports, investor caution persisted due to geopolitical tensions. Brent crude oil prices rose 3.6% to $102.04 per barrel, driven by concerns over restricted oil flow through the Strait of Hormuz, where Iran seized two ships. The ongoing conflict and a U.S. blockade of Iranian ports have heightened fears of prolonged disruptions in oil supply.

In the bond market, Treasury yields remained steady, with the yield on the 10-year Treasury note edging down to 4.29% from 4.30% the previous day.

Overseas markets showed mixed results. Japan's Nikkei 225 rose 0.5%, while Hong Kong's Hang Seng fell 1.3%.

The market's resilience amid geopolitical uncertainties reflects investor confidence in corporate performance, though caution remains due to the potential for prolonged disruptions in global oil supply.