Earnings Poised to Boost Confidence as Stocks Hit New Highs

Investors see signs of easing tensions in the Middle East as earnings season kicks into high gear.

Apr. 17, 2026 at 7:05pm

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An extreme close-up of heavy, intricately geared banking machinery, conveying the industrial power and security of financial institutions in a visually striking, non-literal way.The resilient rebound of the stock market to all-time highs reflects growing confidence in the strength of the financial system, even as the lingering impact of global conflicts remains a concern.Boston Today

The S&P 500 and Nasdaq Composite have rallied to all-time highs as earnings season revs up and tensions appear to be easing in the Middle East. Investors are optimistic that a ceasefire between Israel and Lebanon, along with President Trump's comments about quick progress in talks, signal the U.S.-Iran conflict may be nearing an end. This has helped curb recent market losses and suggests stocks can resume their climb.

Why it matters

The market's ability to rebound to record levels despite recent geopolitical turmoil indicates growing confidence that the economic outlook is improving. Stronger-than-expected earnings could further fuel this optimism and drive the market higher, though some warn the conflict's impact on supply chains remains a risk if it drags on.

The details

The S&P 500 and Nasdaq Composite breached fresh intraday all-time highs on Friday, with the broader S&P 500 topping 7,100 for the first time. The Dow Jones Industrial Average also soared more than 900 points. This comes as first-quarter earnings season gets underway, with the S&P 500 expected to post a blended growth rate of 12.5%. So far, 78% of the 32 companies that have reported have beaten expectations.

  • On Friday, the S&P 500 and Nasdaq Composite reached new all-time highs.
  • First-quarter earnings season has begun, with the S&P 500 expected to post 12.5% growth.

The players

S&P 500

A stock market index that tracks the 500 largest U.S. publicly traded companies.

Nasdaq Composite

A stock market index that includes over 3,000 stocks listed on the Nasdaq exchange.

Dow Jones Industrial Average

A stock market index that tracks 30 of the largest U.S. publicly traded companies.

Donald Trump

The President of the United States.

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What they’re saying

“Markets have turned the corner from the drawdown to be more flattish. I think we're in a pretty healthy place.”

— David Miller, Investment Chief, Catalyst Funds

“The equity market's rapid 12-day transition from oversold to overbought masks a precarious macro reality, especially given the ongoing threat of crude oil above $90/barrel.”

— Craig Johnson, Chief Market Technician, Piper Sandler

What’s next

Investors will be closely watching to see if the ceasefire between Israel and Lebanon holds and if Iran's declaration that the Strait of Hormuz is open leads to a resumption of oil and goods flow through the critical waterway.

The takeaway

The market's ability to rebound to record highs despite recent geopolitical tensions suggests growing confidence in the economic outlook, but the lasting impact of the conflict on supply chains remains a risk that could undermine the rally if it drags on.