Wall Street delivered a mixed session on Wednesday (16 April 2026) as the S&P 500 edged higher to hold above the historic 7,000 level, while the Nasdaq Composite’s remarkable 12-day winning streak — its longest since July 2009 — finally came to an end with a fractional decline.
The Dow Jones Industrial Average rose 0.31% to close higher, the S&P 500 gained 0.16% to settle at 7,041.28, and the Nasdaq Composite slipped 0.02%. The small-cap Russell 2000 index added 0.30%, suggesting broader market participation beyond the mega-cap tech names that have led recent gains.
Earnings Season Heats Up: PepsiCo Delivers, Abbott and Schwab Disappoint
First-quarter earnings season shifted into higher gear on Wednesday, with 39 companies reporting results. The session’s biggest earnings story was PepsiCo (PEP), which delivered a beat on both top and bottom lines. The snack and beverage giant reported adjusted earnings of US$1.61 per share, comfortably ahead of the US$1.55 consensus, on revenue of US$19.44 billion (S$25.6 billion) — an 8.5% year-over-year increase that cleared estimates of US$18.94 billion.
Crucially, PepsiCo’s North American food business returned to volume growth for the first time in over two years after the company cut prices on major snack brands. The Frito-Lay and Quaker Oats combined unit saw volumes rise 2%, while international demand was even stronger, with Asia-Pacific and EMEA food divisions both delivering 9% volume gains. PepsiCo also announced a 4% dividend increase, marking its 54th consecutive annual raise — a reassuring signal for income-focused Singapore investors.
On the other side of the ledger, Abbott Laboratories (ABT) tumbled 4.5% after the healthcare giant cut its full-year earnings guidance to US$5.38–US$5.58 per share, down from previous estimates, to account for US$0.20 of dilution from its US$21 billion (S$27.7 billion) acquisition of cancer diagnostics firm Exact Sciences. While Q1 revenue of US$11.16 billion beat expectations, the lowered outlook overshadowed the beat.
Charles Schwab (SCHW) fell 4.8% despite reporting adjusted EPS of US$1.43 that topped estimates, as revenue of US$6.48 billion came in below the consensus forecast. Meanwhile, KeyCorp (KEY) impressed with a 33% year-over-year EPS jump to US$0.44 on record investment banking fees, and AT&T (T) rose 3.1% on anticipation of strong Q1 results due next week.
Nasdaq’s Historic Streak: What It Means for Investors
The Nasdaq’s 12-day rally — which began on 1 April — has been one of the most remarkable runs in recent market history. The tech-heavy index surged nearly 14% from its March lows, effectively erasing the “war discount” that had weighed on equities during the peak of US-Iran tensions.
The rally was powered by cooling geopolitical fears and a series of cooler-than-expected inflation prints. Semiconductors led the charge, with Micron (MU) surging 9% to a record high, the Philadelphia Semiconductor Index hitting fresh records, and TSMC (TSM) and ARM both gaining over 2%. The Information Technology sector is projected to deliver 27.1% year-over-year earnings growth this quarter, providing fundamental support for the tech-led rally.
The streak’s end on Wednesday was barely noticeable — a 0.02% decline — suggesting the broader trend remains intact rather than signalling any meaningful reversal.
Geopolitical Watch: Hormuz Blockade and Oil Prices
Markets continued to navigate the US-Iran standoff, with crude oil hovering around US$100 per barrel following President Trump’s naval blockade of the Strait of Hormuz. Gold steadied near US$4,790 an ounce after pulling back 1.1% in the prior session. For more background on the geopolitical situation, read our earlier analysis: Iran Talks Collapse and Hormuz Blockade Threat — What Singapore Investors Need to Watch.
The market’s resilience in the face of the blockade has been striking. After an initial sell-off when the blockade was announced on 12 April — with futures dropping over 1% — equities have largely shrugged off the geopolitical risk, betting that diplomatic talks will ultimately prevail. Energy and materials stocks have benefited from elevated commodity prices, while the broader market has found support from strong corporate earnings.
Singapore Market: STI Pulls Back Modestly
The Straits Times Index (STI) dipped 0.27% to 5,008 points on Wednesday, underperforming the US benchmarks but outperforming regional peers. Over the past month, the STI has still gained 1.46% and is up an impressive 34.61% year-over-year.
Among the blue chips, DBS Group Holdings slipped 0.2%, United Overseas Bank (UOB) fell 0.5%, Singapore Exchange (SGX) declined 1.4%, and Hongkong Land Holdings also dropped 1.4%. The modest pullback came as investors remained cautious ahead of the weekend, with the failed US-Iran talks and the Hormuz blockade weighing on sentiment. However, analysts noted that Singapore equities remained relatively resilient and capable of retesting record highs. For more on Singapore market opportunities, see our piece on Top 5 S-REITs Singapore Retail Investors Are Buying in Q1 2026.
Technical Outlook
The S&P 500 is now trading comfortably above the psychologically important 7,000 level, with the next resistance at 7,100. Support sits at the 50-day moving average near 6,750. The RSI remains in the upper end of neutral territory, suggesting room for further gains without being excessively overbought. For yesterday’s record-breaking session analysis, see S&P 500 Closes at Record 7,023 as Nasdaq Streak Hits 10 Days.
For the Nasdaq, the end of the winning streak is a natural pause. The index’s 14% rally from the March lows has stretched short-term momentum indicators, and a brief consolidation period would be healthy before any further advance towards the 25,000 level.
The STI’s support lies at 4,950 (the 20-day moving average), with resistance at the recent record high of 5,060. Singapore’s banking trio remains the key barometer for local market direction.
What to Watch on Thursday
Earnings continue with Netflix (NFLX), UnitedHealth Group (UNH), and Taiwan Semiconductor (TSM) among the heavyweights reporting. Any progress in US-Iran diplomatic channels could trigger another leg higher in equities and ease oil prices. Singapore investors should also watch for MAS monetary policy signals and upcoming bank earnings guidance from DBS, OCBC, and UOB.
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a licensed financial adviser before making investment decisions.
