US open: Wall Street bounces back as fragile Middle East ceasefire holds

5th May 2026 14:25

(Sharecast News) - Major indices were in the green early on Tuesday as major indices looked set to bounce back from losses sparked by renewed Middle East tensions in the previous session.

As of 1435 BST, the Dow Jones Industrial Average was up 0.48% at 49,175.95, while the S&P 500 advanced 0.65% to 7,247.34 and the Nasdaq Composite came out of the gate 0.85% firmer at 25,820.34.

The Dow opened 234.05 points higher on Tuesday, taking a bite out of losses recorded in the previous session after escalating tensions in the Middle East led to renewed fears that the US and Israel's conflict with Iran may not be as close to resolution as previously hoped.

Stocks traded higher early on Tuesday, bouncing back from Monday's losses that followed reports from the United Arab Emirates that Iran had launched drones and missiles against it, putting an already fragile ceasefire between the US-Israel alliance and Iran on even shakier ground.

US officials also claimed American forces had sunk Iranian boats in the Strait of Hormuz, with admiral Brad Cooper, who leads US Central Command, saying that six small Iranian vessels attempting to interfere with commercial shipping had been eliminated, according to Reuters. Iranian state media, on the other hand, denied that any boats had been sunk.

However, while the ceasefire remains fragile, US defense secretary Pete Hegseth said that it "certainly holds" and that "two US commercial ships, along with American destroyers, have already safely transited the strait, showing the lane is clear". Hegseth's commments come after Donald Trump's previous announcement that the US would "guide" stranded ships through the Strait of Hormuz.

Oil prices headed south on the news, with West Texas Intermediate down 3.58% at $102.61 per barrel, while international benchmark Brent crude was 2.80% lower at $11.24 a barrel.

In terms of Tuesday's corporate earnings, Pfizer reported better-than-expected first-quarter earnings and revenue on Tuesday, with the pharmaceutical giant earning $0.75 per share, excluding certain items, on revenues of $14.45bn, while Budweiser parent company Anheuser-Busch InBev also reported a quarterly earnings and revenue beat of $0.97 per share and $15.27bn, respectively.

Elsewhere, digital payments giant PayPal's Q1 earnings and revenue came in ahead of estimates, with the group also announcing a $1.5bn cost reduction program over the next two to three years. PayPal Q1 earnings rose 1% to $1.34 per share on an adjusted basis, while revenue climbed 7% to $8.35bn.

Still to come, chipmaker AMD and video games developer Electronic Arts will release their latest quarterly figures after the close.

On the macro front, US exports rose to $320.9bn in March, an increase of $6.2bn from February, according to the Bureau of Economic Analysis. Imports also moved higher, rising $8.7bn on the month to $381.2bn. The overall goods and services deficit widened to $60.3bn in March, up from a revised $57.8bn in February, reflecting a $4.1bn increase in the goods deficit to $88.7bn and a $1.6bn rise in the services surplus to $28.4bn. Year‑to‑date, the deficit narrowed by $211.2bn, compared with the same period in 2025. Exports were up 12%, while imports fell 9.1%.

Still to come, S&P Global's April composite and services PMIs will be released at 1445 BST, while the Institute for Supply Management's April services PMI, March JOLTS job openings report, and both February and March new home sale data were all slated for publication at 1500 BST.

Reporting by Iain Gilbert at Sharecast.com

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Salesforce.Com Inc. (CRM) $185.48 0.90%

Chevron Corp. (CVX) $192.28 0.87%

Merck & Co. Inc. (MRK) $113.11 0.85%

Dow Chemical Co. (DOW) $40.58 0.72%

Unitedhealth Group Inc. (UNH) $370.75 0.53%

Microsoft Corp. (MSFT) $413.62 0.11%

Dowdupont Inc. (DWDP) $0.00 0.00%

Walmart Inc. (WMT) $0.00 0.00%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

American Express Co. (AXP) $319.21 -0.15%

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Nike Inc. (NKE) $43.09 -2.95%

Boeing Co. (BA) $221.30 -2.71%

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Goldman Sachs Group Inc. (GS) $903.27 -2.21%

Apple Inc. (AAPL) $276.83 -1.77%

Walt Disney Co. (DIS) $101.31 -1.72%

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JP Morgan Chase & Co. (JPM) $307.65 -1.55%

Amgen Inc. (AMGN) $323.85 -1.51%

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Oracle Corp. (ORCL) $180.29 4.92%

Seagate Technology Plc (STX) $738.54 4.66%

Diamondback Energy Inc. (FANG) $213.69 4.24%

Apache Corp. (APA) $42.02 4.19%

Western Digital Corp. (WDC) $442.36 3.90%

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United Parcel Service Inc. (UPS) $96.31 -10.48%

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FedEx Corp. (FDX) $357.80 -9.11%

Norwegian Cruise Line Holdings Ltd (NCLH) $17.20 -8.56%

Tractor Supply Company (TSCO) $32.31 -7.13%

Whirlpool Corp. (WHR) $53.07 -6.19%

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Capri Holdings Limited (CPRI) $18.61 -5.20%

Harley-Davidson Inc. (HOG) $23.21 -5.19%

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Micron Technology Inc. (MU) $576.45 9.00%

eBay Inc. (EBAY) $109.33 7.87%

Illumina Inc. (ILMN) $139.37 6.07%

Take-Two Interactive Software Inc. (TTWO) $225.18 5.32%

Seagate Technology Plc (STX) $738.54 4.66%

Western Digital Corp. (WDC) $442.36 3.90%

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Amazon.Com Inc. (AMZN) $272.05 3.33%

Microchip Technology Inc. (MCHP) $95.30 3.07%

Biomarin Pharmaceutical Inc. (BMRN) $55.46 3.07%

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