Chart of the Day – US500 Rises to All-Time Highs!
Key takeaways
- US500 at All-Time Highs: The index broke the 7,000 barrier and is testing the 7,050 level, driven by hopes of de-escalation in the conflict with Iran and the potential reopening of the Strait of Hormuz.
- Solid Bank Earnings: Wall Street giants (including Goldman Sachs and Citi) kicked off the earnings season above expectations, fueled by a rebound in investment banking and M&A activity.
- Strong Tech Momentum: Record profits from TSMC (+58% y/y) are boosting sentiment across the AI sector ahead of today’s Netflix release, where the market anticipates further subscriber growth and effective monetization.
US500 broke above 7,000 points on Tuesday and subsequently reached new all-time highs during Wednesday’s session in anticipation of the start of negotiations between Iran and the United States. US500 is currently testing the 7,050 area, marking its 4th consecutive session of strong gains. The main driver is, of course, the hope for an end to the conflict in Iran. Iran itself indicates that in the event of a positive outcome of the talks, it is able to allow the use of Omani waters to open the Strait of Hormuz, with a guarantee that ships will not be attacked.
Nevertheless, from the perspective of all of Wall Street, corporate financial results are also key. The banking sector recorded a solid start to the Q1 2026 earnings season, driven primarily by an impressive rebound in investment banking and activity in the area of mergers and acquisitions. Goldman Sachs positively surprised the market, reporting a 48% increase in investment banking fees and record revenue from equity trading, although it simultaneously negatively surprised in the FICC segment. Citigroup achieved its best revenue in a decade, increasing profits by 42% thanks to an effective operational transformation. JPMorgan Chase and Bank of America also beat profit forecasts, supported by stable interest income, although in the case of JPMorgan, investors were concerned by higher-than-expected spending forecasts for the remainder of the year. Wells Fargo performed the weakest in the group; despite beating earnings per share, it disappointed the markets with lower revenue and cautious net interest income (NII) guidance, reflecting the varied impact of persistently high interest rates on the individual business models of Wall Street giants. Expectations for today’s Netflix results are high, and the market is counting on confirmation of the effectiveness of the new monetization strategy and the crackdown on password sharing.
Analysts expect revenue of approximately $12.17 billion (a 15.4% y/y increase) and a net subscriber addition of over 4.5 million, which is to be driven mainly by the dynamically developing advertising segment, already accounting for a significant portion of new registrations. Investors will be particularly sensitive to data regarding the operating margin, which is expected to reach a record 32%, and to management’s comments regarding planned price hikes and the development of the live streaming offer. On the other hand, the Taiwanese giant TSMC has already presented record results for the first quarter of 2026, which have become a strong growth impulse for the entire technology sector.
The company recorded an impressive 58% year-on-year jump in net profit, reaching $18.1 billion on revenue of $36 billion, which was made possible by the unwavering demand for advanced artificial intelligence semiconductors. Maintaining a gross margin of as high as 66.2% confirms TSMC’s dominant position as a key link in the global AI supply chain, which, combined with 40% year-on-year sales growth, places the company as a primary beneficiary of the current technological revolution. Although TSMC is not part of the S&P 500 index, it is one of the largest companies in the world, trades via ADRs on the NYSE, and has a huge impact on the sentiment of other technology companies.
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