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News Topical, Digital Desk : When we start the day with market news, sometimes we get a piece of news that turns the mood positive. On the night of April 16th, the US stock market delivered just such news. Both the S&P 500 and Nasdaq set new records, sending a clear message to investors worldwide: the market still has potential for growth. The S&P 500 closed above 7,051 for the first time, while the Nasdaq reached a new record of 24,156. These aren't just numbers, but a sign of the confidence investors are showing for the future.
The relentless rally…which became a story of confidence.
The most remarkable thing about this rally isn't just the record-breaking, but its consistency. The Nasdaq rose for 12 consecutive days—the first time such a long rally has been witnessed since 2017. When the market continues to rise, it means that investors are treating every dip as a buying opportunity. This is a market of confidence, not fear. This morning is proof that global investors are still willing to take risks and are confident in future growth.
The tech sector... the real hero of the story
If there's one hero of this entire rally, it's the tech sector. Strong results from giants like TSMC and ASML revitalized the market. Results from TSMC, the world's largest chip manufacturing company, made it clear that chip demand remains strong. Meanwhile, the positive outlook from ASML, a maker of chip-making machines, further strengthened this confidence.
This simply means
the story of artificial intelligence is alive
, tech companies' earnings remain strong
, and future growth prospects remain.
This is why the Nasdaq is continuing its upward march.
Geo-politics… where the biggest relief came from
On the night of April 16th, the market received another major boost from geopolitics. Donald Trump stated in an interview that a deal between the US and Iran was near. He even suggested that Iran might be willing to hand over its uranium stockpiles. He also mentioned "free oil" and the opening of the Strait of Hormuz. It's worth noting that there hasn't been any official confirmation from Iran on this. However, the market always discounts the future.
And right now, the market is buying possibilities, not confirmations.
A ceasefire... that eased fears - Meanwhile, another major news arrived: a 10-day ceasefire between Israel and Lebanon came into effect. This ceasefire came into effect at 5 pm New York time (2:30 am in India). This news gave the market confidence that tensions in the Middle East might be easing for the time being. When tensions ease in one part of the world, it impacts the global market.
And this morning is reflecting the impact of that relief.
Oil… which determines the market's direction.
Oil prices are also a key part of this story. Brent crude has reached close to $100. But if the Strait of Hormuz opens, supply will increase, potentially easing price pressure. This means the market is hoping that energy supplies will improve, inflation pressures will ease, and pressure on the Central Bank to raise interest rates will decrease. This expectation is driving the market higher.
Warnings too… but the market ignored them
However, there's a twist in every story. The US Defense Secretary clearly warned that if Iran chooses the wrong path, tough measures will be taken—even blockades and attacks on infrastructure were mentioned. But the market did not pay much attention to this warning.
Why? Because at this time the market is ignoring "negative news" and giving more importance to "positive signals."
Mixed impact of earnings… but the mood is positive.
When it comes to corporate results, the picture is not entirely uniform. PepsiCo reported better-than-expected results, sending shares up 2%. Netflix, meanwhile, delivered strong results but weak guidance, causing the stock to fall in the after-hours session. Charles Schwab shares fell 8% despite strong results. This means the market isn't just driven by results, but is looking at the bigger picture:
tech growth, geopolitical relief, and the energy outlook.
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