U.S. stock market higher ahead of corporate results

Investors are turning to a first-quarter earnings season that is expected to be robust

Investors will look to a heavy week of U.S. corporate results to further fuel a rebound in the country’s stock market, which has shaken off war-related concerns to ​reach record highs.

Hopes for a cooling of U.S.-Iran tensions have led to a sharp rally this month, culminating with major U.S. stock indexes hitting new records in recent ‌days. The benchmark S&P 500 on Wednesday posted its first record-high close since January 27, while the Nasdaq Composite on the same day notched its first all-time-high close since October 29.

Investors are turning to a first-quarter earnings season that is expected to be robust, providing a key pillar buttressing bullish sentiment for stocks. Nearly one-fifth of S&P 500 companies are slated to report results in the coming week.

We’re certainly not out of the woods from war-related developments that could cause daily ​market swings, said Chuck Carlson, chief executive officer at Horizon Investment Services. But I think the market has shifted its attention now toward corporate profits and how stocks respond to those profits.

Oil ​prices remained at higher levels. U.S. crude was almost $85 a barrel on Friday compared to $67 in late February, just before the U.S.-Israeli military strikes on Iran. ⁠

Knock-on effects of sustainably elevated oil prices including higher inflation and higher Treasury yields could pose problems for stocks, said Michael Mullaney, director of global markets research at Boston Partners.

The stock market is ​treating what has happened over the last six weeks as if it has just woken up from a bad dream, Mullaney said. Like there are no further ramifications or repercussions from this. Which I don’t agree ​with.