United States equities advanced on Wednesday (Thursday AEDT), supported by falling oil prices and renewed optimism that the United States and Iran could move towards a ceasefire agreement.
The Dow Jones Industrial Average rose 305.4 points or 0.7% to close at 46,429.5, the S&P 500 gained 35.5 points or 0.5% to 6,591.9, while the Nasdaq Composite outperformed, climbing 167.9 points or 0.8% to finish at 21,929.8.
Investor sentiment improved after reports suggested diplomatic efforts were underway. The Associated Press, citing unnamed officials in Islamabad, said Iran had received and rejected a 15-point proposal from Washington aimed at ending the conflict.
Oil prices declined sharply on the developments, easing concerns over energy supply disruptions. West Texas Intermediate futures fell 1% to $91.36 per barrel, while Brent crude dropped 6.9% to $97.26.
Markets have experienced heightened volatility throughout the week. On Tuesday, stocks gave back part of Monday’s rally, which had seen major indices surge more than 1% after Trump said the two sides had held “very good and productive conversations”.
However, Iranian state media denied that direct talks had taken place.
Technology shares were a key driver of the broader market gains. U.S.-listed shares of Arm surged 16.4% after unveiling a new AI data centre chip expected to generate billions in revenue.
Advanced Micro Devices added 7.3%, and Intel both jumped 7.1%, while Nvidia added 2%.
Destiny Tech100 rallied 15.3% following reports that SpaceX could file its IPO prospectus as early as this week. The fund counts SpaceX as its largest holding.
Other space-related stocks also moved higher, with Rocket Lab rising 10.3%, Intuitive Machines gaining 14.7%, and EchoStar advancing 7.4%.
Chinese technology stocks listed in the U.S. also posted gains. JD.com rose 8.3%, and Alibaba added 3.5% after Chinese regulators and state media called for an end to aggressive price competition in the food-delivery sector.
Robinhood Markets climbed 5% after announcing a US$1.5 billion share buyback programme, boosting investor confidence.
On the bond markets, yields moved lower. The 10-year Treasury yield fell to 4.334%, while the 2-year yield declined to 3.887%.
