Wall Street’s main indexes closed higher on Wednesday, buoyed by falling oil prices and signs that Iran is reviewing a U.S. proposal aimed at de-escalating the conflict in the Middle East. These developments have eased investor concerns about disruptions to global energy flows and rising inflation. However, mixed messages from Iran led to choppy trading, with investors remaining cautious amid ongoing uncertainty.
The Dow Jones Industrial Average rose 0.66%, the S&P 500 gained 0.54%, and the Nasdaq Composite increased 0.77%. Energy stocks were the weakest performers among the S&P 500’s sectors, while materials and consumer discretionary sectors showed the strongest gains. Shares of companies heavily reliant on fuel also rallied, with Norwegian Cruise Line closing up 2.8% and the S&P Composite 1500 Passenger Airlines index rising 1%.
Technology stocks also experienced significant gains. U.S.-listed shares of Arm, a company which specialises in semiconductor and software design, rallied 16.4% following the unveiling of a new AI data centre chip. Advanced Micro Devices and Intel also saw gains of over 7%, while Nvidia shares added 2%. Destiny Tech100, a fund that invests in private tech companies, surged 15% following a report that SpaceX aims to file its IPO prospectus soon. SpaceX is the fund’s largest equity holding. Other space companies such as Rocket Lab, Intuitive Machines, and EchoStar also saw gains.
Elsewhere, U.S.-listed shares of JD.com rose 8%, and Alibaba gained 3.5% after Chinese state media urged the food-delivery industry to end a price war. Robinhood Markets rallied 5% after announcing a new $1.5 billion share buyback program. On U.S. exchanges, advancing issues outnumbered decliners by a notable margin, reflecting the broadly positive sentiment in the market.
