US equity indices advanced for a second straight session on Wednesday after President Trump threatened to escalate military action if Iran continues to target vessels in the Strait of Hormuz. Futures on the S&P 500, Dow, and Nasdaq 100 each rose about 0.5%.
The President said Iran had requested a ceasefire but stressed that Washington would reject any deal and continue strikes on Iranian targets until energy exports in the region are restored. These developments kept market volatility elevated, as further attacks on tankers and infrastructure in Gulf states underpinned demand for safe-haven assets, supporting benchmark US Treasuries.
However, Treasuries remained under some pressure as robust retail sales and private employment data reinforced confidence in the US economy’s ability to absorb a potential energy shock.
Technology heavyweights rallied as improving risk sentiment aligned with renewed optimism around the AI sector, following a fresh funding round for OpenAI featuring new backing from Nvidia, Amazon, and SoftBank. Shares of Meta, Alphabet, and Amazon gained around 1%. In contrast, Nike dropped 12% after issuing subdued guidance.
