The benchmark S&P 500 and the tech-heavy Nasdaq edged higher on Wednesday, as attention turned to a fresh batch of corporate earnings, while investors took stock of the latest developments in the Middle East. The resilience suggests that war-weary investors are ready to rotate into risk assets at the slightest indication of a de-escalation in the conflict. Art Hogan, chief market strategist at B. Riley Wealth, noted, “The market is cautiously optimistic that we can get back to peace with Iran. And thus far, the earnings have been very good.”
Bank of America shares rose 1.6% after the second-biggest U.S. lender reported growth in its first-quarter profit. Wall Street heavyweight Morgan Stanley climbed 4.4% after it also reported a jump in first-quarter profit. At 09:57 a.m. ET, the Dow Jones Industrial Average fell 108.22 points, or 0.22%, to 48,427.77. The S&P 500 gained 7.53 points, or 0.11%, to 6,974.91, while the Nasdaq Composite advanced 100.09 points, or 0.42%, to 23,739.18.
The S&P 500 index is nearing its first intraday record high since the conflict erupted. Seven of the 11 S&P 500 sector indexes posted losses, with materials leading the declines with a 1.2% drop. Federal Reserve Bank of Cleveland President Beth Hammack stated that while she sees no imminent need for the central bank to change its interest-rate target setting, it is possible cuts or even hikes could lie ahead.
