Stocks climb as Middle East ceasefire holds and tech shares

NEW YORK, May 5, 2026 Major stock indices climbed globally on Wednesday as a fragile ceasefire in the Middle East held and tech giants led gains, while falling oil prices and easing geopolitical tensions buoyed investor sentiment. ## Market Gains and Tech Sector Strength The Nasdaq 100 Index surged 1.20%, while June E-mini Nasdaq futures rose 1.16%, reflecting strong momentum in the tech sector. Intel led the charge with a staggering 13% jump, its biggest single-day gain in months. The S&P 500 Index advanced 0.74%, and the Dow Jones Industrial Average climbed 0.57%, marking a broad-based rally. European markets mirrored the uptick, with the Euro Stoxx 50 gaining 1.21%. Analysts attributed the optimism to easing tensions in the Persian Gulf and positive earnings reports. Notably, 82% of the 322 S&P 500 companies that reported first-quarter earnings have beaten estimates, with overall earnings projected to grow 12% year-over-year. Corporate earnings provided further fuel. Waters Corp reported Q1 sales of $1.275 billion, surpassing expectations, while Rockwell Automation posted adjusted EPS of $3.30, well above consensus. Pinterest and Dupont de Nemours also outperformed, with the latter raising its full-year sales forecast. ## Geopolitical Calm and Economic Data The ceasefire between Iran and the US appeared to hold, with Iranian Foreign Minister Abbas Araghchi stating that "talks with the US are making progress." President Trump announced that the US would begin "guiding some neutral ships trapped in the Persian Gulf out through the Strait of Hormuz," a move supported by the US Central Command, which pledged military assistance for the operation. Oil prices tumbled more than 4% as Goldman Sachs estimated that nearly 500 million barrels had been drawn from global crude stockpiles due to recent disruptions. The easing of supply concerns contributed to the drop in WTI crude. Meanwhile, economic data painted a mixed picture. The US trade deficit widened to $60.3 billion in March, up from $57.8 billion in February, while new home sales rose 7.4% to 682,000. The ISM services index dipped slightly to 53.6 in April, and job openings fell by 56,000 to 6.866 million, according to the JOLTS report. The 10-year Treasury note yield edged down 2.1 basis points to 4.417%, as markets priced in a mere 6% chance of a rate cut at the next Federal Open Market Committee meeting in June. ## Corporate Highlights and Misses While many companies reported strong earnings, others faced challenges. PayPal Holdings slid more than 8% after its CEO indicated it would take months to finalize a future plan. Fiserv missed revenue expectations, posting $4.68 billion in adjusted revenue against a $4.73 billion consensus. Inspire Medical Systems cut its full-year revenue outlook, and Westlake Corp reported Q1 sales of $2.65 billion, below estimates. Archer-Daniels-Midland, however, beat expectations with adjusted EPS of 71 cents, while Revvity Inc also outperformed with $711 million in Q1 revenue. Investors remain cautiously optimistic, with the ceasefire and tech sector strength offsetting weaker spots in the economy and corporate landscape.

Global Stocks Rally as Middle East Ceasefire Holds and Tech Shares Surge

Market Gains and Tech Sector Strength

Geopolitical Calm and Economic Data

Corporate Highlights and Misses