Key Points
- A fragile ceasefire between Israel and Iran, brokered by President Trump, appeared to be holding.
- The news brought relief to investors, sending most U.S. stock indexes higher.
- Oil prices, which had fallen sharply on the news of the ceasefire, recovered some ground on Wednesday.
- The ceasefire followed U.S. airstrikes on Iranian nuclear facilities over the weekend. However, the extent of the damage is still unclear.
U.S. stocks were mostly higher on Wednesday as investors breathed a sigh of relief over a fragile ceasefire between Israel and Iran while also keeping a close eye on comments from Federal Reserve Chair Jerome Powell. The Dow was slightly lower, but the S&P 500 and the tech-heavy Nasdaq both pushed into positive territory.
The U.S. stock market showed modest gains today across major indices. The S&P 500 edged up by 0.12%, while the Nasdaq 100 posted a stronger performance, rising 0.38%. The Dow Jones Industrial Average (Dow 30) dropped by 0.17%, reflecting stability in blue-chip stocks.
The ceasefire, brokered by President Donald Trump, appeared to be held on Wednesday after 12 days of intense fighting. Trump announced the agreement on Tuesday but also lashed out at both sides for continuing attacks that seemed to have been planned before the deal was revealed. This came just days after Trump ordered U.S. airstrikes that he claimed “destroyed” Iran’s nuclear facilities.
U.S. Secretary of State Marco Rubio said Iran is now “much further” from developing a nuclear weapon. However, intelligence reports suggest the damage might not be so severe.
Oil prices, which had plummeted on the news of the ceasefire, edged higher on Wednesday. The earlier drop came as the ceasefire eased fears that the conflict would disrupt oil supplies from the region. The small rebound was helped by data showing that U.S. oil inventories shrank last week.
Crude Oil Futures climbed 0.81% to $64.89 per barrel, and Brent Crude Futures rose 0.60%, reaching $66.57 per barrel, indicating continued momentum in the energy sector. Meanwhile, Gold Futures saw a marginal increase of 0.03%, closing at 3,335.0 USD per ounce, signaling investor caution amid ongoing global economic uncertainty.
In other news, NATO leaders agreed to a higher defense spending target, marking a foreign policy win for President Trump. Now, investor attention is turning to Fed Chair Jerome Powell’s testimony before Congress for any hints about the future of interest rates and the economy.
