U.S. Equities Hit Fresh Record Highs as Energy Prices Lead the Rally

Market Overview

U.S. equities staged another historic short squeeze rally, driven by robust corporate earnings and renewed optimism after Donald Trump signaled a temporary extension of the ceasefire agreement. All three major indices closed higher, with the S&P 500 and Nasdaq once again setting new all-time highs.

Technology stocks remained the primary engine of this rally. The Philadelphia Semiconductor Index extended its winning streak to 16 consecutive sessions, marking the longest run in history. The “Magnificent Seven” tech giants all posted gains, while software stocks rebounded for an eighth straight session, recovering nearly 20% from their April lows. Meanwhile, Boeing surged more than 5.5% after reporting a quarterly loss that came in better than expected.

Semiconductors vs. Software: Divergence Emerges

Despite the semiconductor sectors strong momentum, after-hours trading revealed increasing divergence. Tesla reversed earlier gains and fell over 2% intraday. Texas Instruments jumped nearly 10% on strong earnings. In contrast, ServiceNow plunged more than 13% after missing margin expectations, dragging down the broader SaaS sector. IBM also declined over 6% amid uncertainty surrounding its growth outlook.

Energy & Precious Metals

Rising energy costs continue to fuel inflation concerns. Both WTI and Brent crude gained more than 3.5%, with Brent settling at $101.91 per barrel. Supported by inflation expectations, spot gold climbed over 1% intraday and held firm despite some pullback, while silver advanced 1.3%.

Rates & Crypto

Despite strong demand at the 20-year Treasury auction, yields continued to rise alongside oil prices. The 10-year U.S. Treasury yield increased by 1.4 basis points to approximately 4.30%.

Cryptocurrencies showed notable strength. Bitcoin briefly surged above $79,000, marking its highest level since February 2, signaling a clear rebound in market risk appetite.

FX Market

The U.S. Dollar Index extended its rebound for a second consecutive session, rising 0.18% intraday. This suggests that demand for the dollar as a safe-haven asset remains resilient amid a dense earnings calendar.

Key Themes AheadTrump Signals Possible Restart of U.S.-Iran Talks as Early as Friday

Reports indicate that Donald Trump has set a ceasefire deadline with Iran expiring on the 26th. Iran, however, maintains it has not changed its stance on declining participation in negotiations.

Iranian leadership continues to send mixed signals. The president reiterated openness to resolving disputes through dialogue, while the parliamentary speaker emphasized that lifting maritime blockades and achieving a full ceasefire are prerequisites for meaningful talks. He also warned that severe violations of the agreement would eliminate any possibility of reopening the Strait of Hormuz.

Earlier U.S. media reports suggested Trump may grant an additional 3–5 days for negotiations, but not indefinitely. Pakistani sources indicate that mediation efforts could lead to a resumption of talks within the next 36–72 hours.

Shanghai Composite Reclaims 4,100 Level

Chinas A-share market saw broad-based gains, with over 2,900 stocks advancing across Shanghai, Shenzhen, and Beijing exchanges. Total market turnover reached RMB 2.58 trillion, with Shanghai and Shenzhen accounting for RMB 2.56 trillion, representing an increase of RMB 150 billion from the previous session.

On the sector front, CPO (Co-Packaged Optics) stocks surged again, with multiple names hitting new highs. The computing hardware supply chain showed widespread strength, including memory, servers, PCBs, high-speed copper interconnects, and integrated computing-power solutions. In contrast, solar and short-drama gaming sectors underperformed.

Key Data to Watch (GMT+8)

• 20:30 (ET) – Initial Jobless Claims (week ending April 18)

• 21:45 (ET) – S&P Global Manufacturing PMI (Flash, April)

• 21:45 (ET) – S&P Global Services PMI (Flash, April)

• 22:30 (ET) – EIA Natural Gas Storage (week ending April 17)