US stock benchmark opened higher on Wednesday as market sentiment shifted toward cautious optimism following President Donald Trump’s assurance to stabilize global energy market amid the escalating Middle East conflict.
At the opening bell, the Dow Jones Industrial Average rose 134.33 points or 0.28% to 48,629.08. The S&P 500 rose 15.1 points, or 0.22%, to 6,831.69, while the Nasdaq Composite rose 104.2 points, or 0.46%, to 22,620.89.
CFRA Research’s Sam Stovall cited President Trump’s pledge to direct the US Navy to provide safe passage to oil tankers in the Strait of Hormuz, a critical waterway where traffic has slowed considerably since the US-Israeli siege on Iran, sending oil prices higher, according to AFP.
“It seems as if the market is shaking off some of the uncertainty surrounding Iran,” Stovall said.
On the economic data front, a report from ADP showed private employers added 63,000 jobs in February, more than the 48,000 that analysts projected.
In the bond market, the yield on the 10-year Treasury rose to 4.07% from 4.06% late on Tuesday.
Crude Oil
Oil prices erased earlier gains on Wednesday on a media report that Iran indirectly reached out to the US in a bid to end the war in the Middle East.
Brent steadied near $81 a barrel, after surging in the previous two sessions.
The New York Times reported that operatives from Iran’s Ministry of Intelligence reached out to the CIA through another country’s spy agency with an offer to discuss terms for ending the conflict.
However, Iran denied the reports of back channel diplomatic talks. Its semi-official Tasnim news agency said that is “pure falsehood and psychological warfare”.
Bullion Market
Gold prices surged on Wednesday as the escalating Middle East conflict boosted safe-haven bids.
At 1412 GMT, spot gold rose 1.6% to $5,166.75 per ounce. On Tuesday, it fell more than 4%.
US gold futures for April delivery gained 1.1% to $5,177.60.
Following gold prices, spot silver climbed 3.1% to $84.55 per ounce after falling more than 8% in the previous session.
Spot platinum jumped 3.8% to $2,160.64 while palladium advanced 3.5% to $1,705.71.
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