Wall Street charged to fresh records on Wednesday while European equities extended their losing streak to a third consecutive session — a rare transatlantic divergence driven by two competing forces: a blockbuster U.S. earnings season and an escalating Strait of Hormuz crisis that is reshaping the global energy outlook. The Nasdaq hit a new all-time high, and the S&P 500 posted a fresh closing record, even as Iran’s navy seized two container ships and Brent crude pushed back above $100 a barrel.
🇺🇸 US Markets: Nasdaq Sets New All-Time High
| Index | Change | Note |
|---|---|---|
| S&P 500 | +1.05% | New closing record high |
| Nasdaq Composite | +1.64% | New all-time high |
| Dow Jones | +340.65 pts (+0.69%) |
Seven of the 11 S&P 500 sectors advanced, with technology leading at +2.3%. The session was defined by a string of earnings beats that are reshaping full-year profit forecasts. GE Vernova surged more than 13% to an all-time high after raising its revenue and EBITDA margin outlook, citing surging demand from AI data centers and grid infrastructure. The company added $13 billion to its backlog in a single quarter, taking the total to $163 billion — targeting $200 billion by 2027.
Tesla beat Q1 EPS expectations, reporting 41 cents per share against the 37-cent consensus, gaining 4% in the session. Boeing added 5% and Micron Technology rose 9%. The broader earnings picture is unusually strong: of the 87 S&P 500 companies that had reported by Wednesday, 81% beat earnings estimates and 76% beat revenue expectations, per CNBC. JPMorgan raised its S&P 500 EPS forecast for 2026 to $330, and BlackRock moved to overweight U.S. equities — both citing tech and AI optimism rather than an improved geopolitical backdrop.
The extended U.S.–Iran ceasefire announced late Tuesday — with President Trump citing Tehran’s “seriously fractured” government — provided initial tailwinds. But the truce remained fragile: Iran’s navy seized two container ships in the Strait of Hormuz on Wednesday, reinforcing the view among analysts that the conflict has not fundamentally changed Tehran’s strategy.
🇪🇺 European Markets: Third Straight Session in the Red
| Index | Change | Note |
|---|---|---|
| STOXX 600 | −0.4% → 613.88 | 3rd consecutive down session |
| DAX (Germany) | −0.3% | Growth forecast halved |
| CAC 40 (France) | −1.0% | |
| FTSE 100 (UK) | Lower | Middle East uncertainty persists |
European markets diverged sharply from Wall Street. The ceasefire extension was widely seen as unilateral, with neither Iran nor Israel explicitly confirming acceptance, and Rabobank analysts estimated the Strait of Hormuz could remain closed for another four weeks — potentially through late May. That timeline is amplifying the inflation shock hitting Europe’s energy-intensive economies.
The session’s standout macro blow came from Berlin: Germany’s economy ministry halved its 2026 GDP growth forecast to 0.5% (from 1.0%), while raising its inflation projection to 2.7%. Economy Minister Katherina Reiche said the Iran war shock is “intensifying the headwinds” for an economy that was already structurally weak. German exports are not expected to grow year-over-year until 2027. Italy also cut its own growth outlook on the same day.
Key European Movers
- ASM International (+7.1%): Dutch chip equipment maker surged after forecasting Q2 revenue above expectations. ASML gained 1%, Infineon and Aixtron each rose over 3%.
- ABB (+3.4%, record high): Swiss engineering group raised its full-year sales outlook, driven by data center and grid demand.
- Deutsche Telekom (−4.8%): Slipped on reports it is considering a full combination with T-Mobile US.
- Reckitt (−4.6%): Missed Q1 like-for-like net revenue expectations for its core business.
- Travel & leisure (−2.1%), Aerospace & defence (−2.4%): Heavy drag from elevated energy costs and geopolitical risk.
🛢️ Oil, Dollar, and the Hormuz Chokepoint
Brent crude surged back above $100 a barrel, gaining roughly 3% on the day — lifted by the Hormuz seizures and the absence of any credible peace framework. Brent is now up approximately 12% on the week, on track for its second-largest weekly rise since the war began.
On currencies, the dollar strengthened broadly. USD/JPY pushed toward 160.00 — a level that historically triggers Bank of Japan intervention concern. Bitcoin climbed 4% to a three-month high, with $80,000 in sight. The U.S. yield curve flattened for a third consecutive day, while a 20-year Treasury auction came in above average bid/cover with low primary dealer take-up — a modestly constructive signal for bond demand.
U.S. Treasury Secretary Scott Bessent revealed that several Gulf and Asian allies have requested dollar currency swap lines from Washington — a sign that the energy shock is straining hard-currency funding in regional economies. Trump had separately flagged a swap line under consideration with the UAE.
The Federal Reserve trajectory remains a key undercurrent. A Reuters analysis published Wednesday examined Kevin Warsh’s “impossible mission” as Fed chair nominee: taming inflation while avoiding conflict with the president who appointed him — with the Iran energy shock making that balancing act considerably harder.
📌 What Asian and Korean Investors Should Watch Today
- Flash PMI (April, preliminary): S&P Global releases manufacturing and services PMI flash readings for the euro zone, UK, Japan, and the U.S. — the first hard data on how the Hormuz shock is registering in business activity surveys.
- South Korea Q1 GDP (advance): Key gauge for Asia’s export-led economies in the context of Iran war-related trade disruption.
- ECB account of March meeting: Will reveal the Governing Council’s thinking on growth vs. inflation trade-offs before the war escalated.
- U.S. earnings: Honeywell, American Express, Blackstone, American Airlines, Lockheed Martin — watch for any guidance commentary on energy cost headwinds.
- USD/JPY 160 watch: BOJ intervention chatter intensifies if this level breaks. A move above 160 could provoke verbal or actual intervention, affecting Korean won and regional FX.
- Iran/Hormuz developments: Any signal from Tehran on the ceasefire status remains the single biggest binary risk for global markets.
📊 Tracking today’s indicators? Flash PMI, bond yields, and oil prices are moving fast. View live macro indicator data on ECONPLEX — and check the economic calendar for today’s release schedule.
Sources: Reuters Trading Day (Apr 22) · CNBC US Markets Live · Reuters European Equities · Reuters Germany Growth Forecast · Reuters GE Vernova