U.S. stocks rose to snap a two-day skid for the S&P 500 and Nasdaq on Wednesday after U.S. President Donald Trump extended a ceasefire with Iran, although uncertainty remained over whether it would result in any firm peace talks.

Trump said the ceasefire had been extended indefinitely following a request by Pakistani mediators. However, the US Navy’s blockade of Iranian ports remained in effect and Iran seized two ships in the Strait of Hormuz.

The opening of the waterway, which accounts for about 20% of global oil supplies, is a major unknown for investors and one of the main issues in the negotiations. Iran’s parliament speaker and top negotiator, Mohammad Baqer Kalibaf, said a full ceasefire only made sense if the blockade was lifted.

Stocks have rallied in recent weeks on the belief that a peace deal may be on the horizon, with the Nasdaq snapping a streak of 13 straight daily gains on Monday.

“Everybody is sick of it … clearly, the market is looking for a beneficial outcome or some kind of decent outcome here,” said Stephen Massoka, senior vice president at Wedbush Securities in San Francisco.

“Earnings have been good — now, will they continue to be good if we keep going to war — it’s going to lose some of its oomph. That said, in my world, there’s still tremendous value, there’s a lot of cheap stuff out there.”

According to preliminary data, the S&P 500 rose 73.78 points, or 1.03%, to end at 7,137.12 points, while the Nasdaq Composite gained 393.55 points, or 1.62%, to close at 24,653.52. The Dow Jones Industrial Average rose 333.42 points, or 0.68%, to 49,482.80.

According to LSEG data, first quarter earnings growth is tracking at around 14%.

However, with oil prices hovering near the $100-a-barrel mark and potentially higher, inflation risks flaring up.

The S&P 500 technology index climbed nearly 2% and was the best performer among 11 major S&P sectors, led by gains in chip stocks such as Micron Technology, which closed at a record.

The Philadelphia SE semiconductor index hit an intraday record for the 11th consecutive session and its 16th day of gains – its longest streak ever.

Seagate rose after Barclays upgraded the data storage firm’s rating to “overweight.”

Earnings lift sentiment

A strong start to the earnings season has eased concerns about US consumer health, even as the Iran war has pushed up energy prices.

S&P 500 EPS estimates for 2026 and 2027 have risen 4% since late January, according to data from Goldman Sachs.

GE Vernova rose as the best performer on the benchmark S&P index after the power equipment maker raised its annual revenue forecast. Shares of medical device maker Boston Scientific jumped after its first quarter results. Shares of planemaker Boeing advanced after a smaller-than-expected quarterly loss and were the biggest boost to the Dow. United Airlines, however, stumbled after forecasting second-quarter and full-year profits that beat Wall Street estimates as higher jet fuel prices squeezed margins and clouded its near-term outlook.

EV giant Tesla, chipmaker Texas Instruments and Southwest Airlines are expected to report after the market close. Shares of over-the-counter Spirit Airlines more than doubled following a Wall Street Journal report that said the Trump administration was close to a deal to rescue the troubled low-cost carrier.