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US Equity Indexes Rise After Israel-Lebanon Ceasefire Deal Injects Optimism in Middle East Diplomacy

-- US equity indexes rose on Thursday after an agreement for a 10-day ceasefire between Israel and Lebanon removed a major obstacle to Middle East diplomacy in finding a lasting Iran peace deal.

Crude oil futures, however, remained higher as the US warned Iran of military action should it fail to reach a deal in a potential second round of peace talks in Pakistan.

The Nasdaq Composite rose 0.4% to 24,102.70, with the S&P 500 up 0.3% to 7,041.28, and the Dow Jones Industrial Average higher by 0.2% to 48,58.2. Energy, real estate, and technology led the gainers. Health care was the worst performer.

President Trump said the US might hold discussions with Iran this weekend, The Wall Street Journal reported. "We're very close to making a deal," the president told reporters outside the White House, according to the WSJ. Trump said he wasn't sure the current two-week ceasefire in the war would need to be extended, according to the report.

Earlier on Thursday, Trump said on Truth Social that Lebanon and Israel have agreed to a 10-day ceasefire starting 5 pm ET. Lebanese Prime Minister Nawaf Salam said he welcomed the decision. In a follow-up social media post on Thursday, Trump said he plans to invite the Lebanese President, Joseph Aoun, and Israel's Prime Minister Benjamin Netanyahu to the White House for talks.

Meanwhile, US Defense Secretary Pete Hegseth said Thursday that the naval blockade of Iran is an example of "polite" behavior during the ongoing ceasefire, and US forces are ready to strike power plants and the energy industry in the country, if ordered, according to a report from Reuters.

Iranian officials and Pakistan's army chief, Asim Munir, are said to have met in Tehran on Thursday to discuss messages between Tehran and Washington, according to a CNN report. The White House expressed optimism about reaching a deal, saying the second round of talks would likely be held in Pakistan.

The CBOE Volatility Index fell 1.5% to 17.91, after trading as high as 19.09 earlier in the session.

West Texas Intermediate crude oil futures rose 2.3% to $93.56, and Brent crude futures jumped 3.3% to $98.20.

US Treasury yields traded mixed, with the 10-year up 3.8 basis points to 4.32%.

In precious metals, gold futures fell 0.2%% to $4,811.9 and silver futures declined 1.2% to $78.66.

In economic news, US initial jobless claims fell to 207,000 in the week ended April 11 from a downwardly revised 218,000 in the previous week, compared with expectations for a smaller decrease to 213,000 in a survey of analysts compiled by Bloomberg.

"The conflict in Iran is unlikely to cause significant disruptions in the US labor market," Thomas Simons, Chief Economist at Jefferies, said in a note. "There are many vulnerable points in the global economy that are at risk in the near-term due to potential shortages of all sorts of commodities, but for better or worse, the US economy is likely going to be the most insulated in the world."

US industrial production fell by 0.5% in March, compared with expectations for a 0.1% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.7% increase in February.

In company news, Charles Schwab (SCHW) shares dropped 7.6% intraday, the steepest decline on the SP 500, after the company reported Q1 net revenue below analysts' expectations.

Boeing (BA) is ramping up its hiring, reaching about 100 to 140 factory workers a week, in a bid to replace retiring workers and support increasing production rates, Reuters reported Thursday, citing an interview with a union leader. Shares of the aircraft manufacturer dropped 2.3% intraday, the Dow's worst performer.

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Australia

Intel Poised for 'Slight Beat' Amid Solid Server CPU Demand, RBC Says

Intel (INTC) is expected to report a "slight beat" in its fiscal first-quarter results amid robust server central processing unit demand, RBC Capital Markets said in a note e-mailed Tuesday.On Thursday, the chipmaker is likely to post adjusted per-share earnings and revenue above RBC's projections for breakeven and $12.20 billion, respectively, for the March quarter, according to the brokerage. The current consensus on FactSet is for non-GAAP EPS of $0.02 and sales of $12.42 billion."We expect a slight beat/raise driven by strong server CPU demand," RBC analyst Srini Pajjuri said. "(Personal computer) market also appears to be holding up for now."First-quarter revenue in the company's data center and artificial intelligence segment is pegged at $4.3 billion, representing a 3% annual gain, with room for potential upside, according to RBC."While demand remains strong, management expected internal wafer supply constraints to be most acute in (the first quarter) which could limit near-term upside," Pajjuri wrote. "Recent media reports point to Intel raising prices which should help."For the current quarter, RBC expects Intel to issue an outlook above Wall Street's estimates of $13.1 billion in revenue and adjusted EPS of $0.09, driven by server CPU demand and improving wafer supply.The data center and AI business is projected to see sequential growth of 10% in the second quarter, with RBC seeing potential upside amid improving supply and healthy pricing. The brokerage expects server demand to continue to benefit from agentic AI and sees industry supply remaining "tight" through 2026, it said in the note.RBC maintained its sector perform rating on Intel's stock with a $48 price target.The company's shares were up 0.3% in Tuesday afternoon trade, bringing its year-to-gains to nearly 79%.Last year, the US government agreed to invest $8.9 billion in Intel's common stock as part of a deal to secure a stake in the company. Separately, Nvidia (NVDA) agreed to inject $5 billion in Intel under a collaboration that aims to develop new data center and PC chips.Price: $66.04, Change: $+0.34, Percent Change: +0.52%

$INTC$NVDA
Australia

Scholastic Reports Preliminary Results of Dutch Auction Tender Offer

Scholastic (SCHL) on Tuesday announced preliminary results from its modified Dutch auction tender offer, which closed on Monday.The company said that shareholders tendered a total of about 2.85 million shares at or below the $40 per share purchase price, including about 1 million shares that were tendered by notice of guaranteed delivery.Based on the preliminary count, Scholastic expects to purchase all properly tendered shares at $40 each, for a total cost of about $114.1 million, excluding fees and expenses, it added.The company said that following completion of the offer, it expects nearly 17.9 million shares to remain outstanding, representing a reduction of about 13.7% in its share count.Shares of Scholastic rose 2.3% in the session.Price: $40.69, Change: $+0.93, Percent Change: +2.34%

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Sectors

Sector Update: Financial

Financial stocks were declining in Tuesday afternoon trading, with the NYSE Financial Index decreasing 0.7% and the State Street Financial Select Sector SPDR ETF (XLF) off 0.6%.The Philadelphia Housing Index was adding 0.6%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) fell 1.8%.Bitcoin (BTC-USD) was decreasing 0.9% to $75,117, and the yield for 10-year US Treasuries was rising 5 basis points to 4.30%.In corporate news, Coinbase (COIN) and Gemini Titan have been sued by New York Attorney General Letitia James for allegedly violating the state laws against against illegal gambling with their prediction markets, Reuters reported, citing complaints filed in a state court in Manhattan. Coinbase shares fell nearly 7%.

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