US equity indexes surged in a broad-based rally led by communication services and industrials ahead of the close on Thursday, whistling past a worsening geopolitical environment.
The Dow Jones Industrial Average jumped 1.8% to 49,733.1, with the S&P 500 up 1.1% to 7,216.5 and the Nasdaq Composite higher by 1% to 24,923.8. Technology was the sole decliner, but was off session lows in the final leg of trading.
Alphabet's (GOOG, GOOGL) shares jumped 7%, among the leaders on the Nasdaq, after the company overnight reported higher Q1 earnings and revenue that topped market expectations. Qualcomm's (QCOM) shares soared 14%, the top performer on the S&P 500 and the Nasdaq, after the company posted better-than-expected fiscal Q2 adjusted earnings and revenue late Wednesday. Caterpillar (CAT) raised its full-year sales growth outlook as Q1 results exceeded market expectations. Its shares soared 8.7%, the Dow's leader.
US President Donald Trump will hear about updated military options for Iran from Pentagon officials on Thursday, as a possible way of forcing Tehran into an agreement, CNN reported. Trump's current strategy is to inflict economic pain on Iran.
Iran's new supreme leader gave a rare statement Thursday, vowing not to give up the country's nuclear or missile technologies and signaling Tehran would keep control of the Strait of Hormuz, Bloomberg reported. Iran will "guard" its "advanced technologies" like it does its own borders, Mojtaba Khamenei was cited as saying in a written statement. It will "secure the Persian Gulf region and dismantle the hostile enemy's exploitation of this waterway," he added, referring to the strait.
Nevertheless, West Texas Intermediate crude oil futures fell 1.6% to $105.22, and Brent crude futures dropped 3.4% to $114.01.
In economic news, the US core personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, rose to 3.2% year-on-year in March from 3%, meeting expectations. Core PCE climbed 0.3% month-over-month, as expected, but down from the 0.4% reported in February.
Most US Treasury yields dropped, with the 10-year down 3.2 basis points to 4.38%, and the two-year slumped 5.3 basis points to 3.88%.