NEW YORK, April 18, 2026, 14:21 EDT
U.S. stocks pushed further into record territory Friday, with the S&P 500 and Nasdaq locking in a third consecutive record close. That came as officials in Iran said the Strait of Hormuz would stay open to shipping amid a Lebanon ceasefire, sending oil prices tumbling. For the week, the S&P 500 surged 4.53%, the Nasdaq jumped 6.84%, and the Dow moved up 3.2%.
The quick rebound has put the market’s focus squarely on earnings, just two weeks after war headlines rattled investors. Next week, close to 20% of S&P 500 names will post results, with Tesla, Boeing, and Procter & Gamble all on the docket. Also on tap: Kevin Warsh—President Donald Trump’s Fed chair pick—heads to the Senate Banking Committee on April 21.
Even for markets familiar with sharp swings, the rebound’s pace has been striking. After the conflict broke out on Feb. 28, the S&P plunged as much as 9%; the Dow and Nasdaq both dipped 10% from recent peaks—right at that correction mark investors watch. According to Bespoke Investment Group, the S&P had never managed to hit a fresh all-time high just 11 sessions after pulling back between 5% and 9.9%. “Momentum begets momentum,” said Sonu Varghese at Carson Group. Jim Reid at Deutsche Bank summed it up: the “velocity of this ascent” is astonishing. Reuters
The spark on Friday was clear. Brent crude tumbled 9% to settle at $90.38 a barrel, with U.S. crude plunging 11.45% to $83.85. That knocked back worries about fuel-driven inflation. The U.S. 10-year Treasury yield dropped to 4.246%, and the two-year yield edged down to 3.7%. “It’s all the good news coming out of the Gulf,” said Tom di Galoma at Mischler Financial Group. Reuters
Gains weren’t limited to the tech giants. The Russell 2000, packed with smaller U.S. companies, notched a record close. Travel stocks caught a strong bid—United Airlines and Royal Caribbean rallied hard as falling oil prices eased concerns over fuel costs. For smaller firms, tight margins mean lower energy prices carry more weight, according to Nick Johnson of Willis Johnson & Associates.
Earnings landed early, offering investors something concrete beyond geopolitics. JPMorgan posted a 20% jump in markets revenue for the first quarter. Citigroup, for its part, logged a 19% climb in total markets revenue. Bank of America reported its own sales and trading revenue up 13%, hitting $6.4 billion. “A resilient American economy,” Bank of America CEO Brian Moynihan said of the results. Still, JPMorgan’s Jeremy Barnum flagged the trading boost as a product of highly volatile market conditions. Reuters
The rest of the earnings season just got more critical. First-quarter S&P 500 profits are on track for a 14.4% year-over-year increase, according to LSEG’s LipperAlpha. Out of 48 companies that had reported by Friday, 87.5% topped analyst forecasts—running well ahead of the typical beat rate.
The picture isn’t as neat as it looks. There’s still no U.S.-Iran deal on paper, and Reuters notes some analysts are sticking to warnings about shipping snarls in the Strait. Oil prices remain above where they were before the conflict, even after Friday’s slide. “It’s like the market just woke up from a bad dream,” said Michael Mullaney of Boston Partners, though he’s not buying that narrative. Reuters
Records are set heading into next week, but there’s little margin for error now. A spike in crude, a shift from Warsh’s hearing on rates, or shaky earnings from Tesla, Boeing and other majors could bring this furious rally to a halt just as fast.
