S&P 500 Erases Iran War-Driven Losses as Earnings Season Begins

The S&P 500 fully recovered losses triggered by the Iran conflict, rebounding after a temporary ceasefire was announced in April 2026. Traders drove the rally, shifting sentiment from geopolitical risks to corporate fundamentals as first-quarter earnings reports began rolling out. The rebound marks a sharp reversal from early-war selloffs, with markets now pricing in reduced Middle East tensions and stronger-than-feared economic resilience. Analysts attribute the turnaround to the ceasefire’s stabilization effect, though cautions remain about lingering volatility if negotiations stall. Earnings season’s start provided additional momentum, as early reports from major firms signaled steady profitability despite earlier macroeconomic uncertainties.