TradingKey Today’s Market Recap: Nasdaq’s Record 12-Day Rally and S&P 500 Hit New Highs; Trump Secures Non-Nuclear Guarantee from Iran, Brightening Prospects for Negotiations

TradingKey - On April 16, Eastern Time, buoyed by market optimism, the three major U.S. stock indices closed higher across the board. The Nasdaq rose 0.36% and the S&P 500 gained 0.26%, with both hitting new intraday and closing highs. Meanwhile, the Nasdaq has risen for 12 consecutive trading days, marking its longest winning streak since 2009. The Dow Jones Industrial Average climbed 0.24%.

In terms of individual stocks, during the earnings season, Charles Schwab (SCHW) fell 7.6% after reporting mixed first-quarter results and missing analyst revenue estimates; impacted by news that Charles Schwab is set to launch spot cryptocurrency trading, Robinhood (HOOD) shares fell slightly.

Major tech stocks saw mixed performance, with only Microsoft (MSFT) posting a significant gain of 2.2%. Oracle (ORCL) rose 5% after announcing an expanded multi-cloud partnership with AWS. Akamai, which has seen significant volatility recently, (AKAM) shares rose 7.1%, paring some of the losses from the previous five days.

Netflix (NFLX) continued to slide in after-hours trading following news that co-founder Reed Hastings will step down in June, with the decline reaching 8.99% as of 9:00 GMT+8. PepsiCo (PEP) rose 2.28% on the back of strong first-quarter earnings.

Market Headlines

Trump said US-Iran talks could take place this weekend, and the US has obtained a statement from Iran agreeing not to possess nuclear weapons; Iran has not yet responded. Trump stated that a deal is very close and hopes to reach it during the ceasefire; the agreement would provide the US with "free oil and free passage through the Strait of Hormuz." He warned that if no deal is reached, fighting will resume. He noted that the US has secured a "very weighty" statement ensuring Iran will not possess nuclear weapons for over 20 years, to which Iran has not yet responded.

Trump said Lebanon and Israel will observe a 10-day ceasefire; the Israeli side agreed to the ceasefire but will not withdraw its troops. Trump stated that the ceasefire began at 5:00 PM ET on Thursday. According to reports, Israel views southern Lebanon as a security "buffer zone," claiming the current ceasefire terms allow Israeli forces to continue taking action upon detecting "threats." The US State Department said that during the ceasefire, Israel retains the right to self-defense against planned attacks but will not launch offensives against Lebanon. The Iranian Speaker said Iran would treat the Lebanon-Israel ceasefire with caution.

Powell refuses to "hand over power" early, as Trump threatens to "fire him on the spot." As the confirmation of his successor Warsh faces obstacles, Trump has threatened to fire Powell after his term expires, while Powell insists on staying as "interim chair," escalating the head-on conflict between the two sides. Powell's term as chair ends on May 15, but Warsh has yet to be confirmed by the US Senate, meaning Powell could continue to serve as "interim chair" during the transition. Senator Tillis is using a Department of Justice investigation as leverage to block Warsh's nomination, making the transition timeline highly uncertain.

With the hearing for Warsh's nomination as Fed Chair approaching, Democrats on the Senate Banking Committee have collectively called for a postponement. Warsh, Trump's nominee for Fed Chair, is expected to testify next Tuesday, but all 11 Democratic members of the Senate Banking Committee wrote to the committee chairman on Thursday, stating that Warsh's nomination process should not proceed until investigations into two current Fed officials, Chair Jerome Powell and Governor Lisa Cook, are concluded. Consequently, the likelihood of Warsh being confirmed by the Senate before Powell's term expires on May 15 has decreased.

Top 10 Most Actively Traded Stocks

The chart below lists the ten most actively traded stocks in the U.S. market on Thursday. Driven by massive trading volume and high liquidity, these assets have become key benchmarks for tracking global market dynamics.