Stock Markets Surge, Oil Plunges on U.S.-Iran Peace Deal Optimism
Stock indexes hit record highs after reports the U.S. and Iran are near an agreement to end their war and reopen the Strait of Hormuz. Oil prices fell sharply on the peace hopes, with crude dropping 7%, while technology stocks led the market gains.
Markets Rally on Iran Deal Hopes
The price of oil plunged and stocks surged Wednesday after a report said the U.S. believed it was nearing a deal to end the war with Iran and eventually reopen the Strait of Hormuz.
Index Performance
The S&P 500 closed higher by 1.5% and the Nasdaq Composite jumped 2%, with both indexes closing at record highs. The Russell 2000 index also added 1.5%, and the Dow Jones Industrial Average traded up by more than 610 points.
Oil Price Collapse
U.S. crude oil plunged by as much as 15%, to $88 per barrel, and international Brent crude oil fell as much as 11%, to $96 per barrel. West Texas Intermediate futures dropped 7.03%, settling at $95.08 per barrel. International Brent lost 7.83% to end at $101.27.
Tech Leadership
Semiconductor names rallied after Supermicro Computer (+24.5%) and Advanced Micro Devices (+17.77%) reported fantastic earnings, buoying industry peers like Nvidia (+5.5%), Intel (+4.22%).
Caution from Trump
The moves moderated slightly after Trump told the New York Post in an interview that it was "too soon" to prepare to sign a peace deal.