Global equities remain strong as ceasefire extension hopes boosted sentiment

Global equities continue to exhibit strong bullish momentum, supported by improved risk sentiment and growing optimism about potential U.S.-Iran diplomatic engagements.

Iran Peace Hopes and TSMC’s Strong Earnings Fuel Rally

European shares extended gains, while U.S. stock futures remained steady early Thursday, as tensions in the U.S.-Iran conflict appear to ease. Both countries are seeking to extend their initial two-week ceasefire. A second round of talks may take place soon, with both sides open to negotiations; however, no date or venue has been confirmed, according to Pakistan's Foreign Ministry.

Investor sentiment was further boosted after Taiwan Semiconductor Manufacturing Company (TSMC) reported a record 58% increase in Q1 profits, exceeding forecasts and predicting even higher sales in Q2. Net profit increased 13.2% from the previous quarter and 58.3% year-over-year, indicating another milestone for the world's largest contract chipmaker.

Wall Street Extends Winning Streak: Key Focus for Today

The S&P 500 and Nasdaq closed at record highs on Wednesday, with the S&P 500 surpassing 7,000 for the first time and the Nasdaq hitting new highs, while the Dow Jones Industrial Average lagged slightly. Attention now shifts to the North American session, where U.S. jobless claims, the Philadelphia Fed Manufacturing Index, and industrial production data will be released. These reports are expected to provide insight into the economy’s health and influence the Federal Reserve’s outlook on potential rate cuts.

On the earnings front, streaming giant Netflix (NASDAQ: NFLX) is set to report results for the first quarter of 2026, with investors hoping the company’s performance will help sustain market momentum.

Meanwhile, market participants should closely monitor ongoing U.S.-Iran negotiations and the prospects for a long-term peace agreement. Although the ceasefire offers a positive backdrop, any escalation or new developments could quickly shift market sentiment.

 

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