United States benchmark indices advanced on Wednesday (Thursday AEDT), as a pullback in oil prices and resilient economic data helped investors look beyond the escalating conflict involving Iran.
The Dow Jones Industrial Average rose 238.1 points, or 0.5%, to close at 48,739.4. The S&P 500 gained 52.9 points, or 0.8%, to finish at 6,869.5, while the Nasdaq Composite climbed 290.8 points, or 1.3%, to settle at 22,807.5.
Technology shares led the advance, particularly semiconductor stocks. Micron Technology and Advanced Micro Devices each surged more than 5%, while Broadcom and Nvidia added more than 1% apiece.
Investor sentiment was also supported by upbeat economic data. Payroll processor ADP reported that U.S. private-sector employers added 63,000 jobs in February, beating market expectations of 50,000.
In addition, the U.S. ISM services PIM report recorded stronger-than-anticipated growth last month, with inflation pressures easing.
Analysts at ANZ said: "data is still important, and in the U.S. this week it has been indicative of solid growth at the start of 2026 and declining inflation pressures. February ADP private-sector jobs rose 63k, although jobs growth was again narrowly based, with the education and healthcare sectors adding 58k jobs.
"It was also notable that small businesses employing 1-19 workers hired 58k workers, and wage growth for that sector was 2.6% y/y.
"The February ISM services index rose on strong new orders. But despite the strength in the February services ISM, prices paid fell 3.3pts to 63.0, the lowest reading since March last year"
The positive response to the data came as oil’s recent surge lost momentum. U.S. Treasury Secretary Scott Bessent told CNBC that Washington would make “a series of announcements” aimed at supporting oil flows through the Persian Gulf.
Oil prices had rallied sharply earlier in the week after Donald Trump pledged to provide risk insurance for maritime trade through the Gulf to encourage tankers to resume transit via the Strait of Hormuz, the world’s most critical chokepoint for crude shipments.
Traffic through the passage had stalled following threats from an Iranian Revolutionary Guard commander to target vessels attempting to pass.
On trade policy, Bessent said Trump’s previously announced 15% global tariff would be implemented this week.
However, he added that U.S. tariff rates were expected to return “within five months” to levels that prevailed prior to the Supreme Court’s decision striking down the president’s earlier tariff regime.
On the bond markets, yields moved higher, with the 10-year Treasury rate rising 0.8% to 4.098% and the two-year yield up 1.1% to 3.551%.
