Major US stock indices surged on Wednesday after President Donald Trump extended the ceasefire with Iran.
Strong corporate financial performance and ongoing AI fever have significantly reinforced investor sentiment.
With numerous blue-chip companies exceeding earnings expectations and high-profile tech acquisitions making headlines, many investors are optimistic that the recent market surge is sustainable.
At 09:50 a.m. ET, the Dow Jones Industrial Average rose 343.83 points, or 0.72%, to 49,504.58, the S&P 500 gained 45.98 points, or 0.65%, to 7,109.99 and the Nasdaq Composite gained 185.28 points, or 0.76%, to 24,445.24.
At the open, the Dow Jones Industrial Average rose 122.1 points, or 0.25%, to 49,271.5. The S&P 500 rose 38.9 points, or 0.55%, to 7,102.91, while the Nasdaq Composite rose 202.3 points, or 0.83%, to 24,462.313.
Energy markets saw crude oil prices rise on Wednesday as the Strait of Hormuz remains paralyzed, halting critical Gulf energy shipments. Maritime agencies reported fresh volatility in the region, noting that Iranian gunboats targeted at least one container vessel within the Strait on Wednesday.
Brent North Sea was once again above $100 a barrel while main US contract, West Texas Intermediate, traded above $90.
On Tuesday, Trump announced an extension of the existing temporary ceasefire just before its scheduled expiration.
“Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal. I have therefore directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other,” Trump said on Truth Social.
Despite the blockade, market analysts said there is a prevailing hope for de-escalation. Both the US and Iran are incentivized to resolve a conflict that has driven oil and gas prices to levels that threaten global economic stability.
“Most seem convinced that the war will soon be over, or that it will have little effect on the US economy, even if energy prices remain relatively elevated,” said David Morrison, senior market analyst at Trade Nation.
Key Stock Movers
Boeing shares rose 1.6% after the planemaker reported smaller-than-expected quarterly loss.
Seagate shares jumped 2.2% after Barclays upgraded the data storage firm’s rating to “overweight”.
Boston Scientific’s stock soared 8.2% after the medical device maker’s quarterly results.
GE Vernova stock jumped 13.3% after the power equipment maker raised annual revenue forecast.
United Airlines stock dropped 3.7% after the firm forecast second quarter and full-year profits below analysts estimates.
Adobe shares rose 3.2% after the photoshop maker announced a share buyback program worth up to $25 billion.
Bullion
Gold prices rose on Wednesday, as longer-dated US Treasury yields fell.
By 9:42 a.m. EDT (1342 GMT), spot gold was up 0.8% at $4,749.61 per ounce. US gold futures for June delivery gained 1% to $4,767.70.
Among other metals, spot silver rose 1.6% to $77.92 per ounce, platinum gained 2.1% to $2,079.21, and palladium was up 1.5% at $1,556.49.
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