Stocks on Wall Street Reach New Heights as Earnings Surge and Oil Prices Decline

Global Stocks Surge as Earnings Beat Estimates, Oil Prices Ease

U.S. and global stocks experienced a significant jump on Tuesday, driven by a series of robust earnings reports from major corporations. The surge in stocks came despite ongoing tensions between the U.S. and Iran over the Strait of Hormuz, which had sparked concerns about supply disruptions in the oil market.

On the Wall Street, the S&P 500 and Nasdaq notched record high closes on Tuesday, with Intel and other AI-related stocks leading the charge. The Dow Jones Industrial Average also rose, with a 0.73% increase, while the S&P 500 added 0.8% and the Nasdaq Composite about 1% higher.

In Europe, the STOXX 600 rose approximately 0.7%, while MSCI's gauge of stocks across the globe gained 0.54%. Despite the uptick in stocks, oil prices eased on Tuesday, with Brent futures falling $4.57, or 4%, to settle at $109.87 a barrel.

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According to data from S&P Global Market Intelligence, 83% of S&P 500 companies that have already reported have beaten earnings per share (EPS) estimates, and 78.2% of them have beaten revenue estimates. Furthermore, LSEG data shows earnings growth for the S&P 500 is now projected to top 18% in the first quarter, up from estimates of around 12.8% just a month ago.

The robust earnings reports have contributed to a "risk-on" attitude among investors, who continue to focus on the positive performance of U.S. corporations rather than the ongoing tensions between the U.S. and Iran. Scott Wren, senior global market strategist at the Wells Fargo Investment Institute, noted that investors remain "complacent" and are more focused on the robust earnings and capital expenditures of U.S. corporations.

In the currency market, traders had their eyes on the yen after it briefly jumped in the previous session, stoking speculation of another round of intervention from Tokyo. The yen was last slightly weaker on the day, leaving the dollar up around 0.4% at 157.82.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

U.S. Treasury yields fell on Tuesday, with benchmark U.S. 10-year notes down 2.2 basis points to 4.424%. Elsewhere, spot gold rose approximately 0.75% to $4,554 an ounce, above Monday's trough at $4,500, the lowest since March 31. Bitcoin also continued its rebound, trading at $81,652, up from around $62,800 in early February.