Market close, April 16, 2026: S&P 500 hits all-time high at 7,041 as Iran ceasefire optimism lifts tape

NEW YORK, April 16, 2026 — U.S. equities closed at record highs Thursday, with the S&P 500 rising 0.26% to 7,041.28, the Nasdaq Composite advancing 0.36% to 24,102.70, the Dow Jones Industrial Average adding 0.24% to 48,578.72, and the Russell 2000 gaining 0.22% to 2,719.60. The session delivered a 12th consecutive Nasdaq advance — the index’s longest winning streak since July 2009 — fuelled by a decisive Iran ceasefire announcement from President Trump, a record-shattering Taiwan Semiconductor quarter, and a wave of AI-linked momentum across semiconductors and speculative healthcare names. The 10-year Treasury yield edged higher by 3.4 basis points to 4.313%.

Session narrative: Ceasefire headlines and chip earnings drive the tape

Equities opened modestly higher — as detailed in the Opening Bell recap — and held a narrow range through mid-morning before ceasefire headlines accelerated gains across risk assets. President Trump confirmed a 10-day Israel-Lebanon ceasefire effective 5:00 PM ET on April 16, telling reporters that an Iran nuclear deal is “very close to over” and that talks could resume as early as this weekend. Pakistan’s army chief separately met Iranian officials in Tehran, reinforcing diplomatic momentum and lifting energy equities while providing a constructive macro backdrop for the broader tape.

Taiwan Semiconductor Manufacturing Co. (TSM) delivered the session’s defining fundamental catalyst in the pre-market. Q1 net profit surged 58% to NT$572.48 billion, against a consensus estimate of NT$543.32 billion, on revenue of NT$1.13 trillion ($35 billion) — a slight beat versus the NT$1.127 trillion forecast. Full-year revenue growth guidance was set above 30% year-over-year, and Q2 guidance of $39 billion to $40.2 billion — a roughly 10% sequential step-up — exceeded expectations. Chief executive C.C. Wei stated that “AI-related demand continues to be extremely robust,” and capital expenditure for full-year 2026 is now trending toward the higher end of the $52 billion to $56 billion range, up from $40 billion in 2025. TSMC did flag one risk: escalating Iran-related tensions could tighten helium supplies, a critical input for chip fabrication, with attendant cost pressures on the broader semiconductor supply chain.

By midday, as captured in the midday pulse, the S&P 500 was holding the 7,037 level with Iran optimism sustaining energy and the semiconductor complex. The final two hours saw gradual drift higher on light but active volume, with the Nasdaq-100 setting a fresh all-time high at 26,298.00 before the 4:00 PM close.

Data Visual

April 16 Major Index % Changes

Shows how all four major U.S. equity benchmarks moved on April 16, 2026, giving traders a quick relative-strength read across cap sizes.

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Sector scorecard: Energy and technology lead; financials lag

Energy was the session’s top-performing sector, driven directly by Iran ceasefire optimism reducing tail-risk premiums on Middle East supply disruption. Technology followed closely, with semiconductors providing the primary lift. Healthcare outperformed the broader market, largely on a single regulatory catalyst in the compounded therapeutics space. Financials underperformed after Charles Schwab’s earnings disappointment weighed on the brokerage sub-sector.

Winners

Advanced Micro Devices (AMD) was the standout large-cap performer, surging 7.80% to $278.26 on volume of 62.8 million shares — 65% above its three-month average of 38 million. The move reflected AI-demand momentum amplified by TSMC’s guidance, alongside a Bernstein price-target raise. Hims & Hers Health (HIMS) gained 11.07% to $26.98 on volume of 74.6 million shares — 111% above the three-month average — after HHS Secretary Robert F. Kennedy Jr. announced that the FDA may remove 12 peptide therapies from Category 2 restriction, opening a potential pathway for compounded peptide treatment expansion. D-Wave Quantum (QBTS) added 3.41% to $21.52 on extraordinary volume of 84.3 million shares — 195% above its 28.6 million share average — as renewed interest in quantum applications was linked to Nvidia’s open-source AI model releases and commentary from D-Wave’s CEO at the Semafor World Economy summit.

Losers

Charles Schwab (SCHW) was the session’s most notable large-cap decliner, falling between 3.9% and 7.6% after reporting record Q1 profit but missing analyst revenue expectations. The company’s announcement of a planned spot cryptocurrency trading platform, far from reassuring investors, appeared to reinforce concerns about Schwab’s competitive positioning relative to Robinhood Markets (HOOD), which itself edged down 0.54% to $86.85 on 51.3 million shares. Abbott Laboratories (ABT) fell approximately 4% after cutting its 2026 profit forecast, citing the financial impact of its $23 billion Exact Sciences acquisition and a weaker-than-expected flu-season diagnostic performance. Interactive Brokers (IBKR) declined 0.40% to $79.38.

Data Visual

TSMC Quarterly Revenue (NT$ Trillion)

Tracks TSMC’s quarterly revenue in New Taiwan dollar trillions from Q1 2025 through Q2 2026 guidance, illustrating the AI-driven acceleration that underpinned semiconductor sentiment on April 16.

Values in NT$T

After-hours earnings and movers

Netflix (NFLX) — Q1 2026

Netflix reported after the close in what was the session’s most anticipated earnings event — previewed in detail in PreMarket Daily’s Q1 earnings preview. The headline figures were unambiguously strong: EPS of $1.23 against a consensus of $0.76 — a 61.84% beat — on revenue of $12.25 billion versus the $12.18 billion estimate. Revenue grew 16% year-over-year. Operating income reached $3.96 billion (+18% YoY), operating margin expanded to 32.3% from 31.7% in the prior year period, net income was $5.3 billion, and free cash flow hit $5.1 billion. Full-year revenue guidance was set at $50.7 billion to $51.7 billion. A significant portion of the EPS beat was attributable to a $2.8 billion Warner Bros. Discovery contract termination fee recognised in the quarter.

Despite the financial strength, Netflix shares fell approximately 10% in after-hours trading following the announcement that co-founder Reed Hastings will depart the board in June 2026. The departure introduces a governance and cultural overhang that appears to have overshadowed the financial beat in after-hours price discovery. MoffettNathanson raised its price target to $120 following the report.

PepsiCo (PEP) — Q1 2026

PepsiCo delivered a beat on both lines: EPS of $1.61 versus the $1.55 consensus on revenue of $19.44 billion against the $18.95 billion estimate. The key operational development was the first volume increase in PepsiCo’s North American food business in more than two years, driven by price cuts of approximately 15% on Lay’s, Doritos, Tostitos, and Cheetos. Management nonetheless warned that the global economy is “more volatile and uncertain” due to ongoing geopolitical tensions. The stock gained a modest 0.3% on the session.

Taiwan Semiconductor (TSM) — Q1 2026

As detailed in the session narrative above, TSMC’s Q1 results were the fundamental anchor of the day’s move. The 58% profit surge, record revenue, and upward-biased CapEx guidance framing created a positive read-through for the entire AI infrastructure supply chain — from design (AMD, Nvidia) through to hyperscaler capex (Amazon, Microsoft, Google). TSM shares closed marginally higher as much of the beat had been absorbed in pre-market trading, with the semiconductor sector delivering a mixed but net-positive close.

Charles Schwab (SCHW) — Q1 2026

Record Q1 profit and robust client growth were insufficient to offset a revenue miss and the market’s scepticism regarding the firm’s planned spot crypto trading platform. With Robinhood already entrenched in the retail crypto segment, Schwab’s announcement was read as reactive rather than strategic, contributing to the sharp intra-day decline.

What today sets up for tomorrow

The after-hours Netflix decline — if sustained to Friday’s open — introduces the session’s first meaningful headwind for the Nasdaq after 12 consecutive gains. With the index at all-time highs and momentum extended, a single high-weight name printing a double-digit loss in extended hours creates both an index-level drag and a sentiment test for growth investors. The broader question heading into Friday is whether ceasefire optimism and semiconductor momentum can absorb the NFLX overhang or whether profit-taking emerges at elevated levels.

On the economic calendar, market participants will monitor any update from Iran-related diplomatic channels over the weekend, with Trump having flagged the possibility of resumed talks as early as Saturday. Domestically, the Federal Reserve’s April 28–29 FOMC meeting remains the next major policy catalyst; March PPI’s -0.5% miss against the +1.1% consensus continues to provide the committee with analytical cover to hold rates steady without signalling stagflation concerns. The earnings calendar for Friday includes additional consumer and industrial names that will be assessed for read-through to PepsiCo’s volume recovery narrative and the broader demand picture.

Thursday’s session demonstrated that markets can sustain record territory when geopolitical de-escalation and fundamental earnings quality move in concert. The S&P 500’s advance has now been supported, in sequence, by the Big Six bank beats — most recently Morgan Stanley’s $3.43 EPS print against the $3.09 consensus and Bank of America’s ROTCE of 14.0% — by soft inflation data, and now by a semiconductor super-cycle confirmation from TSMC. Whether Friday’s open absorbs the Netflix governance shock or treats it as an isolated single-name event will be the tape’s first test of the week’s resolve.