Stocks close at new record high as US extends ceasefire with Iran

Key Points:

• Southwest Airlines reported Q1 adjusted earnings of $0.45 per share and revenue of $7.25 billion, both slightly below analyst expectations, leading to a more than 6% drop in after-hours trading.
• The airline provided Q2 adjusted earnings guidance below estimates and declined to update its full-year profit forecast due to ongoing macroeconomic uncertainty, citing higher fuel costs as a key challenge.
• ServiceNow's Q1 results showed revenue and earnings in line with expectations but revealed a sequential decline in profit margins, causing its shares to fall amid concerns about AI's impact on software companies.
• IBM posted better-than-expected Q1 revenue and earnings but saw its stock drop after omitting an internal AI business metric, raising investor concerns amid competitive pressures from AI advancements like Anthropic's COBOL modernization.
• ASML shares fell after TSMC announced it would delay adopting ASML’s newest, expensive chipmaking machines until 2029, signaling TSMC's focus on cost discipline despite strong profitability, which impacted ASML’s near-term outlook.