The New York Stock Exchange closed higher as strong corporate earnings overshadowed concerns about tensions in the Middle East.
The Dow Jones rose 1.62%, or 790.33 points, to finish at 49,652.14.
The S&P 500 gained 1.02%, or 73.06 points, to close at 7,209.01, while the Nasdaq rose 0.89%, or 219.07 points, to 24,892.31; both indexes hit record highs.
The Volatility Index (VIX), often referred to as the market’s “fear index,” declined 10.26% to 16.88.
While news regarding tensions in the Middle East, the intensifying earnings season, and macroeconomic data remained in the spotlight for investors, the stock markets followed a positive trend.
Reports in the US press claimed that US commanders would brief President Donald Trump on new military options regarding a potential US/Israel-Iran war.
Meanwhile, reports indicated that the Trump administration is attempting to form an international coalition to revive maritime shipping in the Strait of Hormuz as tensions with Iran persist.
While the closure of the Strait of Hormuz continues to keep risks to energy supply high, oil prices declined.
As of 2045GMT, Brent crude futures traded at $111.20 per barrel, while West Texas Intermediate (WTI) crude was at $105.60.
Despite this decline, oil prices remained above pre-war levels.
On the macroeconomic data front, while the US economy grew by 2% in the first quarter of this year due to increases in investment, exports, consumer spending, and government spending, the growth rate fell short of expectations.
The number of people filing initial claims for unemployment benefits in the US fell by 26,000 from the previous week to 189,000 in the week ending April 25, coming in below market expectations.
European markets
European stocks saw positive figures, with the pan-European Stoxx Europe 600 index gaining 1.38% to close at 611.28 points.
In national markets, the UK’s FTSE 100 went up by 1.62% to 10,378.82, and Germany’s DAX 40 soared 1.41% to 24,292.38 points.
France’s CAC 40 earned 0.53% to 8,114.84, Italy’s FTSE MIB 30 rose 0.94% to 48,246.12, and Spain’s IBEX 35 increased 0.78% to end at 17,781.