Global markets are showing strength as U.S. stock futures advanced Wednesday, fueled by President Trump’s announcement of “Great Progress” towards a deal with Iran and robust corporate earnings. The S&P 500 and Nasdaq closed at fresh records on Tuesday, a trend continued in Asia-Pacific markets led by South Korea’s Kospi reaching new highs. Key tech companies like AMD and Super Micro Computer also saw significant gains in extended trading after delivering strong outlooks.
Global financial markets opened with a bullish outlook on Wednesday, buoyed by positive geopolitical developments and robust corporate earnings reports. Stock futures surged following an announcement from President Donald Trump, who stated that "Great Progress" had been achieved towards a comprehensive agreement with Iran. This diplomatic headway led to the suspension of "Project Freedom," a U.S. initiative designed to guide ships safely through the critical Strait of Hormuz.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 5, 2026.
Brendan McDermid | Reuters
In early trading, S&P 500 futures climbed 0.29%, while Nasdaq 100 futures saw an even stronger gain of 0.62%. Dow Jones Industrial Average futures also advanced, rising 140 points, or 0.21%.
These pre-market gains followed a strong showing in Tuesday's regular session. The broad-market S&P 500 rose 0.81%, and the technology-heavy Nasdaq surged 1.03%, with both indexes hitting new intraday and closing records. The Dow also contributed to the positive momentum, gaining 356.35 points, a 0.73% increase. The primary catalysts for Tuesday's rally included widespread solid earnings results, with roughly 85% of reporting S&P 500 companies beating earnings estimates and 77% surpassing revenue expectations.
Further contributing to investor optimism were comments from Defense Secretary Pete Hegseth, who confirmed the ongoing ceasefire between the U.S. and Iran and the successful transit of two U.S. commercial ships and American destroyers through the Strait of Hormuz, indicating safe passage.
Extended trading painted a particularly bright picture for the tech sector. Chipmaker Advanced Micro Devices (AMD) saw its shares jump 16% after issuing an upbeat revenue forecast of approximately $11.2 billion for the second quarter, in addition to exceeding first-quarter estimates. Super Micro Computer, a server manufacturer, also surged 18% on strong profit expectations for its fourth quarter. Conversely, cloud networking firm Arista Networks experienced a nearly 12% drop in shares due to its adjusted gross margin narrowly missing analyst predictions.
Lori Calvasina, Head of U.S. Equity Strategy at RBC Capital Markets, characterized the market's resilience on CNBC's "Closing Bell: Overtime," stating that stocks are "climbing a wall of worry." She emphasized that the robust "AI trade" and strong earnings are providing a substantial buffer for S&P 500 earnings per share, suggesting that while a market breather might eventually occur, current conditions are not "overheated."
Global Market Overview:
Asia-Pacific markets largely tracked Wall Street's positive performance. South Korea's Kospi marked a new record, leaping 6.68% to surpass 7,000 points. Major Korean tech firms like Samsung Electronics, which crossed a $1 trillion market capitalization, and SK Hynix both hit all-time highs with gains of over 15% and 10% respectively. Elsewhere, China's CSI 300 added 1.62%, Hong Kong's Hang Seng index rose 0.62%, and India's Nifty 50 saw a 0.72% increase. Australia's S&P/ASX 200 climbed 0.87%, though Japan's market remained closed for a holiday.
In commodities, oil prices experienced a dip. West Texas Intermediate futures for June decreased by 1.78% to $100.45 per barrel, while Brent crude futures for July declined 1.70% to $108.00 per barrel.
Upcoming Key Events:
Ahead of Wednesday's market open, investors await earnings reports from prominent companies including Walt Disney, CVS Health, Kraft Heinz, Marriott, and Uber Technologies. The ADP private payrolls report for April will also be closely monitored for insights into the U.S. labor market.
On Tuesday, all eleven GICS sectors within the S&P 500 finished in positive territory. Materials and Information Technology sectors led the advances with gains of 1.67% and 1.63%, respectively, while Utilities and Financials saw marginal increases of 0.01% each.
