By Anietie anii-bassey
U.S. stocks pushed higher on Thursday, hovering near record territory, as strong corporate earnings helped offset dramatic swings in global oil markets driven by the ongoing conflict with Iran.
The S&P 500 rose 0.8%, edging just above its recent all-time high as investors continued to respond positively to a wave of stronger-than-expected earnings reports for early 2026. The Dow Jones Industrial Average surged by 725 points, or 1.5%, while the Nasdaq Composite gained 0.7%, supported by advances in major technology firms.
Leading the rally was Alphabet, which jumped 9.4% after delivering quarterly profits that far exceeded analysts’ forecasts. Chief executive Sundar Pichai highlighted the company’s expanding investments in artificial intelligence, noting that the technology is now driving growth across multiple parts of its business, from search to cloud services.
The upbeat performance on Wall Street came despite extreme volatility in oil markets, where prices surged overnight before retreating sharply. The fluctuations reflect ongoing uncertainty about global energy supplies as tensions between Iran and the United States continue to disrupt key shipping routes.
Iran’s closure of the Strait of Hormuz—a critical artery for global crude transport—has significantly constrained supply, trapping tankers in the Persian Gulf. At the same time, a U.S. naval blockade has prevented Iran from exporting its own oil, compounding the disruption.
In the most actively traded segment of the Brent crude market, prices for July delivery briefly climbed to $114.70 per barrel overnight before falling back toward $107 and later stabilizing near $109. While still elevated, the retreat from earlier highs helped ease some pressure on financial markets.
In thinner trading for June delivery contracts, Brent crude briefly spiked above $126 per barrel before pulling back to around $113. Even with the pullback, oil prices remain significantly higher than the roughly $70 levels seen prior to the outbreak of hostilities, underscoring the persistent strain on global energy markets.
Despite these headwinds, a steady stream of corporate earnings has helped sustain investor optimism. Caterpillar and Eli Lilly both climbed more than 10% after reporting results that surpassed expectations, while Royal Caribbean rose 4.4% on similarly strong performance. Such results have reinforced confidence that corporate profitability remains resilient even amid economic uncertainty.
However, not all strong earnings reports translated into gains. Meta Platforms fell 8.8% despite beating profit forecasts, as investors reacted to the company’s sharply increased spending outlook. Meta said it plans to invest between $125 billion and $145 billion this year, largely to expand its artificial intelligence infrastructure, including data centers.
The reaction highlights growing unease among some investors about the scale of spending across the tech sector, particularly on AI. While companies argue such investments are essential for future growth, skeptics question whether they will deliver sufficient returns.
Similar concerns weighed on Microsoft, which dropped 5.2% after raising its own capital expenditure projections, even as analysts pointed to strong momentum in its Azure cloud division. Amazon also slipped 1.1% despite reporting better-than-expected earnings, suggesting that expectations for major tech firms remain exceptionally high.
In the bond market, Treasury yields edged lower as oil prices retreated from their peaks. The yield on the 10-year U.S. Treasury fell to 4.39% from 4.42% the previous day, reflecting a modest shift in investor sentiment.
Economic data released Thursday painted a mixed picture. Growth in the U.S. economy during the first quarter appeared to have been slower than economists had anticipated, while inflation in March rose roughly in line with expectations.
At the same time, a separate report indicated that fewer Americans filed for unemployment benefits last week, suggesting that layoffs remain relatively subdued even as some companies announce workforce reductions.
Global markets showed a similarly mixed pattern. European stocks moved higher, supported in part by central bank decisions to hold interest rates steady. London’s FTSE 100 climbed 1.6% after the Bank of England left its benchmark rate unchanged, following similar moves by the Federal Reserve and the Bank of Japan earlier in the week.
On the continent, Germany’s DAX rose 1.4%, while France’s CAC 40 added 0.5% after the European Central Bank also opted to keep rates on hold.
In Asia, trading was more subdued. Hong Kong’s Hang Seng Index fell 1.3%, while markets in mainland China posted modest gains after data showed factory activity slowed slightly in April but remained in expansion territory.
As investors navigate a complex landscape shaped by geopolitical tensions, fluctuating energy prices and rapid technological investment, the resilience of corporate earnings continues to serve as a stabilizing force—at least for now—keeping global markets within reach of historic highs.
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