Nasdaq Extends Rally to 11 Days, Hits Fresh Record High on Extended Ceasefire Expectations

Market Overview

Market sentiment was primarily driven by expectations of an extended ceasefire between the U.S. and Iran, alongside strong bank earnings. Reports suggesting a potential prolongation of the ceasefire significantly eased geopolitical concerns, pushing both the S&P 500 and Nasdaq Composite to new all-time highs, with the Nasdaq marking an impressive 11-day winning streak.

Although the Dow Jones Industrial Average ended its two-day advance, NVIDIA also recorded its longest 11-day rally. The financial sector outperformed, with Morgan Stanley and Bank of America posting solid gains following robust Q1 earnings. Meanwhile, large-cap software names such as Microsoft and Salesforce provided strong support to the broader market, offsetting weakness in memory chip stocks.

Sector BreakdownTechnology & Semiconductors Diverge

Despite the semiconductor index extending its record-setting streak to six consecutive sessions, internal divergence has emerged. SanDisk declined sharply by 5.6%, while Broadcom surged over 4% on expanded chip collaboration with Meta.

ASML fell more than 4% despite raising guidance, reflecting concerns that Middle East tensions could weigh on high-end consumer demand. Luxury giants such as Kering and Hermès also posted steep losses.

Precious Metals & Cryptocurrencies

As safe-haven demand continued to fade, precious metals retreated from elevated levels. Spot gold dropped over 1% intraday, while gold futures pulled back from near four-week highs. Silver followed a similar pattern, reversing earlier gains.

In contrast, cryptocurrencies outperformed. Bitcoin briefly surged above the $75,000 mark, signaling a swift return of risk appetite and capital inflows into digital assets.

Energy & Industrial Metals

Oil markets experienced heightened volatility. U.S. crude prices plunged nearly 5% intraday to a three-week low before rebounding sharply, ultimately closing up 2% on short covering.

In industrial metals, LME aluminum posted strong gains, rising over 1% to a four-year high, while copper retreated modestly from its two-month peak.

Fixed Income & FX

U.S. Treasury yields reversed their two-day decline, with bond prices moving lower. The U.S. Dollar Index extended its weakness, marking an eight-day losing streak and approaching a one-month low.

The offshore Chinese yuan weakened past the 6.82 level, snapping its previous eight-session rally, suggesting a technical correction following sustained appreciation.

Key HighlightsMorgan Stanley Q1 Revenue and Profit Hit Record Highs

Morgan Stanley reported Q1 net revenue of $20.6 billion, up 16% year-over-year from $17.7 billion. Net income reached $5.6 billion, rising 29% YoY, while diluted EPS climbed 32% to $3.43 from $2.60.

Equity trading revenue surged to $5.15 billion, up 25% YoY, driven by heightened market volatility and increased client activity, setting a new record.

Federal Reserve Beige Book (April)

Across the Feds 12 districts, economic activity showed mixed trends:

• 8 districts reported slight to moderate growth

• 2 remained relatively unchanged

• 2 experienced slight to moderate contraction

Ongoing Middle East tensions remain a key source of uncertainty, complicating hiring, pricing, and capital investment decisions. Many firms have adopted a wait-and-see approach.

Key Data to Watch (GMT+8)

• 20:30 (ET) – Initial Jobless Claims (week ending April 11), Philadelphia Fed Manufacturing Index (April)

• 21:15 (ET) – Industrial Production MoM (March)