Oil Markets Rally on Iran Tensions; Stocks Hit New Records as Tech Giants Report Earnings Beats
U.S. stock markets reached new highs on Thursday as investors gained confidence from strong earnings reports by Caterpillar and Alphabet, while oil prices surged on continued tensions over Iran. The S&P 500 hit a fresh record closing above 7,200 for the first time.
Markets Surge Amid Mixed Signals
Stocks rose on Thursday, with the S&P 500 reaching a fresh all-time high, as investors reacted to upbeat earnings from Caterpillar and Alphabet and moved past fears of a possible escalation between the U.S. and Iran. The broad market index rose 1.02% to close at 7,209.01, its first close above the 7,200 threshold.
Tech Sector Leads
The tech-heavy Nasdaq jumped 0.89% to 24,892.31, hitting new intraday and closing records as well. Shares of Alphabet gained 10%, offering a boost to the broader market. That move came after the company's first-quarter revenue beat expectations. It also increased its 2026 capital expenditure guidance range to as much as $190 billion.
Oil Prices on the Rise
California gasoline prices hit $6 per gallon on Thursday, a 30% increase since the U.S. and Israel launched the war against Iran in late February. Drivers in California are paying the most in the nation at $6.01 per gallon on average, according to data from AAA.
Iran Blockade Impact
Oil climbed after The Wall Street Journal, citing U.S. officials, reported that President Donald Trump had told aides to prepare for an extended blockade of Iran. Prices extended gains after Axios reported that Trump rejected Iran's proposal to reopen the Strait of Hormuz, signaling the U.S. naval blockade will remain until a deal addressing Tehran's nuclear program is reached.