How Wall Street is setting records even with the Iran war still going on

For Wall Street, everything eventually comes back to a different, basic question: How much money are companies making?

It seems so illogical. How can the U.S. stock market be setting records when gasoline prices are still expensive, U.S. households are feeling less confident about the economy and the war with Iran is still going?

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But for Wall Street, everything eventually comes back to a different, basic question: How much money are companies making? And at the moment, they’re earning so much that investors are willing to pay higher prices than ever for a piece of ownership of U.S. companies.

It’s been a jarring ride for investors, many of whom may have felt the urge to dump their stock investments last month when the S&P 500 fell nearly 10% below its prior record. But as it has every time so far in its history, the index at the heart of many 401(k) accounts rewarded investors who remained patient by not only recovering all its losses but also forging to new heights. On Wednesday, the index closed at a record 7,137.90.