The Iran war hasn’t ended, but US stocks have recovered from their war-related sell-off. The US stock market has effectively wiped out losses from the Iran war. On Tuesday, the S&P 500 rose 1.18% to 6,967.38, putting it within striking distance of a new all-time high.
A significantly softer-than-expected wholesale inflation figure alleviated some concerns about the impact of rising oil prices on inflation in the coming months. Investors are also optimistic that corporate America had a great first quarter, with analysts predicting double-digit profit growth for the S&P 500.
Here are five things to know before the US stock market opens today, Wednesday, April 15.
US Stock Market Indices
US stock futures are slightly in the red, with all three leading indices just 0.25% lower on Wednesday. The STOXX 50 fell 0.2% and the STOXX 600 traded around the flatline on Wednesday, as investors awaited further developments in the Middle East. FTSE 100, DAX and CAC 40 are all trading flat with a negative bias on Wednesday.
In Tuesday’s regular trading, the S&P 500 and Nasdaq Composite advanced 1.18% and 1.96%, respectively, while the Dow rose 0.66%.
With Tuesday’s rally, the Nasdaq entered positive territory for 2026, a day after the other two, and finished higher for the tenth straight session. The S&P 500 finished within 12 points of its record closing high, achieved on January 27, just over a month before the United States and Israel attacked Iran.
Micron Technology led the gainers in the Nasdaq 100, surging 9.17% to $465.66, up $39.10 on the session. Axon Enterprise followed with a 5.9% rise to $380.86, adding $21.23. Western Digital climbed 4.59% to $366.22, gaining $16.06, while Meta Platforms advanced 4.41% to $662.49, up $27.96.
Sentiments
Investor sentiments are bullish as they hope that a deal would eventually be struck between the U.S. and Iran. Growing confidence that the US and Iran could soon begin talks is boosting investor morale and fueling expectations for an agreement to end the crisis and reopen the Strait of Hormuz. Following last weekend’s breakdown in negotiations, Washington and Tehran are apparently hoping to convene another round of talks before the current two-week ceasefire expires.
Oil Prices
Falling oil prices are boosting sentiments across the financial markets. Brent crude futures traded at $95 per barrel on Wednesday, maintaining losses from the previous session as investors awaited a second round of peace talks between the United States and Iran before the two-week ceasefire expired.
President Donald Trump reportedly stated that talks in Pakistan could resume “within the next two days” after they fell apart last weekend. The United States maintains a naval embargo on Iranian oil exports through the Strait of Hormuz, while Tehran is considering a temporary stop in supplies via the corridor to encourage progress toward a compromise.
US Dollar Index
The US dollar index, which measures the value of the US dollar against a basket of foreign currencies, trades around 98.12 on Wednesday. The 10-year Treasury yield, which influences mortgage and other consumer credit interest rates, fell below 4.26% after closing above 4.29% the day before.
Earnings Season
Investors will be watching earnings from big banks like Bank of America, Morgan Stanley, and PNC Financial, as well as reports from Dutch chipmaker ASML. According to FactSet, the Financials sector will be a focus for the market this week, as 75% of the S&P 500 companies (21 out of 28) scheduled to report earnings for the first quarter during this time period are in this sector, including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Travelers Companies, and Wells Fargo.
The Financials sector is expected to have the third-highest year-on-year earnings growth rate of the eleven sectors in Q1, at 15.1%. This growth rate also exceeds the 14.6% earnings increase expected at the beginning of the quarter (December 31).
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investment in foreign securities involves significant risks, including currency fluctuations, different financial reporting standards, and varying regulatory environments. The historical performance of US stocks is not a guarantee of future returns, and gains should not be viewed as an offer or solicitation to buy. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
