U.S. Stocks Rise as Investors Cheer Signs of Middle East Diplomatic Progress
U.S. stock markets opened higher on Wednesday as investors reacted positively to growing optimism surrounding a potential peace agreement between the United States and Iran aimed at ending the ongoing Middle East conflict.
At 09:31 ET (13:31 GMT), the benchmark S&P 500 advanced 0.7% to 7,310.48 points, while the tech-heavy Nasdaq Composite gained 0.9% to 25,540.79 points.
Meanwhile, the Dow Jones Industrial Average climbed 0.9% to 49,715.39 points.
White House Reportedly Close to Iran Agreement
According to Axios, the White House believes it is nearing a preliminary agreement with Iran through a one-page memorandum of understanding designed to end the conflict and establish the foundation for broader nuclear negotiations.
The report, citing U.S. officials, stated that Washington expects Tehran to respond to several major issues within the next 48 hours.
Although no final agreement has yet been reached, officials reportedly described the negotiations as the closest both countries have come to ending the conflict since fighting began in late February.
Proposed Deal Could Ease Sanctions and Restore Hormuz Transit
Under the proposed framework, Iran would reportedly agree to pause nuclear enrichment activities.
In return, the United States would lift sanctions and release billions of dollars in frozen Iranian assets. Restrictions affecting transit through the Strait of Hormuz would also reportedly be removed, allowing shipping traffic to resume through the critical energy chokepoint.
Earlier, U.S. President Donald Trump announced a temporary pause in operations intended to reopen the Strait of Hormuz and stated that progress was being made toward an agreement with Tehran.
Oil Prices Retreat as Market Tensions Ease
Oil prices moved lower following signs of possible diplomatic progress.
Brent crude futures, the global oil benchmark, declined 6% to $103.26 per barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped 5.9% to $96.16 per barrel.
Despite the decline, both crude benchmarks remain significantly above pre-war levels, continuing to fuel concerns over inflation pressures and slowing global economic growth.
AMD Leads Market Gains After Strong Earnings
Shares of Advanced Micro Devices surged more than 19% after the semiconductor company reported stronger-than-expected first-quarter earnings and issued upbeat guidance for the current quarter.
Like rival NVIDIA, AMD has benefited heavily from booming demand tied to artificial intelligence infrastructure and data center expansion.
Investors Await Major Earnings Reports and Jobs Data
Several major corporate earnings reports are still expected later this week.
Chip designer Arm Holdings, entertainment giant The Walt Disney Company, and ride-hailing company Uber Technologies are all scheduled to report earnings on Wednesday.
Meanwhile, McDonald’s, Gilead Sciences, and McKesson are set to release results on Thursday.
Investors are also closely watching Friday’s U.S. nonfarm payrolls report for additional insight into the strength of the American labor market.
