United States equity markets extended their gains on Tuesday (Wednesday AEST), as investors weighed ongoing optimism around a potential diplomatic agreement between the United States and Iran, alongside fresh corporate earnings and inflation data.
The Dow Jones Industrial Average rose 317.8 points, or 0.7%, to finish at 48,536.0. The S&P 500 advanced 81.2 points, or 1.2%, to 6,967.4, while the Nasdaq Composite outperformed, climbing 455.4 points, or 2%, to close at 23,639.1.
Wall Street continued to show resilience despite persistent geopolitical uncertainty. Investor sentiment remained supported by hopes that negotiations between Washington and Tehran could still yield a deal, even after talks over the weekend failed to produce a breakthrough.
U.S. President Donald Trump reinforced that view, stating, “We’ve been called by the other side,” adding that Iran was eager to reach an agreement.
Oil prices moved sharply lower, reversing gains from the previous session. West Texas Intermediate crude futures dropped 7.9% to settle at US$91.28 per barrel, while Brent crude declined 4.6% to $94.79 per barrel, easing concerns about prolonged supply disruptions.
On the macroeconomic front, U.S. inflation data offered some reassurance. Producer prices rose less than expected in March, with service costs remaining flat. The softer reading added to confidence that inflationary pressures may be stabilising, supporting risk appetite.
Corporate earnings were mixed, however, with some financial stocks facing pressure. Shares in JPMorgan Chase slipped 0.8% following its first-quarter results, while Wells Fargo declined 5.7% after reporting net interest income below market expectations.
In contrast, BlackRock gained 3% after posting higher first-quarter profit, driven by robust inflows into its exchange-traded funds and a notable increase in performance fees.
Citigroup rose 2.6%, reaching its highest level since late 2008 after exceeding profit forecasts.
Healthcare stocks also contributed to gains, with Johnson & Johnson rising 0.9% following its latest earnings report.
In airline stocks, United Airlines rose 2.1%, while American Airlines surged 8%. The move followed a Reuters report that United CEO Scott Kirby had proposed a potential merger with American Airlines to President Trump earlier this year, raising the prospect of a transformative deal within the aviation industry.
Elsewhere, Globalstar jumped 9.6% after Amazon agreed to acquire the satellite operator, signalling continued expansion in space-based communications.
In fixed income markets, U.S. Treasury yields edged lower. The 10-year yield fell 1.6% to 4.248%, while the 2-year yield declined 1.4% to 3.745%.
