U.S. stocks rally to records, but Brent oil also tops US$100 on worries about the Iran war

Specialist James Denaro works at his post on the floor of the New York Stock Exchange, Monday, April 20, 2026. (AP Photo/Richard Drew)

NEW YORK — The U.S. stock market rallied to more records Wednesday after GE Vernova, Boston Scientific and other big companies joined the parade reporting fatter profits for the start of the year than analysts expected. But caution still hung over Wall Street, and oil prices rose on uncertainty about what will happen in the war with Iran.

The S&P 500 jumped one per cent and topped its prior all-time high set on Friday. The Dow Jones Industrial Average added 340 points, or 0.7 per cent, and the Nasdaq composite set its own record after jumping 1.6 per cent.

GE Vernova flew 13.7 per cent higher after the company, whose products help generate about a quarter of the world’s electricity, reported profit for the first three months of the year that blew past analysts’ expectations.

Like the broader stock market, GE Vernova is benefiting from the rise of artificial-intelligence technology, and its electrification business booked more equipment orders for data centers during the quarter, US$2.4 billion, than it did during all of last year. The company also raised its forecasts for revenue and other financial measures over the full year.

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The vast majority of companies in the S&P 500 have so far been delivering results for the start of 2026 that have topped analysts’ expectations, even with the war in Iran driving up oil prices and uncertainty for the global economy. Such strong performances have helped the S&P 500 power higher, and the index recorded its 13th gain in its last 16 days.

Boston Scientific rallied 9 per cent, Boeing climbed 5.5 per cent, and Philip Morris International rose seven per cent after all likewise delivered results for the latest quarter that were stronger than analysts expected.

Still, another rise in oil prices helped keep enthusiasm in check on Wall Street. The price for a barrel of Brent crude oil, the international standard, climbed 3.5 per cent to US$101.91 on uncertainty about when the war with Iran could let up and allow petroleum to flow freely to customers from the Persian Gulf again.

The war has restricted traffic through the Strait of Hormuz, the narrow waterway off Iran’s coast that oil tankers typically use to exit the Persian Gulf. Iran fired on three ships in the strait and seized two of them on Wednesday.

A day earlier, U.S. President Donald Trump extended a ceasefire but also said he was maintaining an American blockade of Iranian ports. The blockade keeps Iran from making money by selling its own crude oil.

The standoff over Iran’s closure of the strait and the U.S. blockade raised doubts about when or if talks would resume to end the crisis.

Brent crude has shot up from roughly US$70 per barrel since before the war on worries about a long-term disruption to the flow of oil. But moves in both the oil and stock markets have become more modest in recent weeks, following vicious swings where Brent’s price briefly topped US$119 and the S&P 500 dropped nearly 10 per cent below its prior all-time high.

On the losing end of Wall Street Wednesday was Best Buy, which fell 4.6 per cent after the electronics retailer announced the departure of CEO Corie Barry. She will be replaced by longtime insider Jason Bonfig, the company’s chief customer, product and fulfillment officer.

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Stocks of cannabis companies rose amid reports that the Trump administration is preparing to reclassify marijuana as a less dangerous drug. Trump signed an executive order in December meant to speed up the Drug Enforcement Administration’s process for reclassifying the drug, a move that would not make it legal for recreational use by adults nationwide, but could change how the drug is regulated and reduce a hefty tax burden on the cannabis industry.

Tilray Brands jumped 14.2 per cent, and Canopy Growth soared 20.2 per cent.

All told, the S&P 500 rose 73.89 points to 7,137.90. The Dow Jones Industrial Average added 340.65 to 49,490.03, and the Nasdaq composite climbed 397.60 to 24,657.57.

In stock markets abroad, indexes fell in Europe following a mixed finish in Asia. Japan’s Nikkei 225 rose 0.4 per cent, while Hong Kong’s Hang Seng sank 1.2 per cent.

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In the bond market, Treasury yields held relatively steady despite the gain in oil prices. The yield on the 10-year Treasury remained at 4.30 per cent, where it was late Thursday.

A day before, it had climbed after Trump’s nominee to chair the Federal Reserve, Kevin Warsh, said he never promised Trump he would cut interest rates even though Trump has been angrily calling for lower rates.

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Stan Choe, The Associated Press. AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.