US equities advanced on Wednesday as investors reassessed the scale of economic risks posed by higher tariffs and the war in Iran. The S&P 500 and the Nasdaq 100 each rose 0.8%, while the broader Nasdaq gained 1.5%.
The recent surge in pro-inflation risks moderated as fuel-related commodities paused their rally. Treasury Secretary Bessent signaled forthcoming measures to ease fuel prices, even as he confirmed that global tariffs would be raised. His comments followed reports that a container ship had been struck in the Strait of Hormuz, reinforcing skepticism over President Trump’s assurances of insurance and protection for tankers transiting the strategic chokepoint.
Inflation concerns were further tempered by data from the ISM Non-Manufacturing PMI, where the prices index slowed despite an improvement in overall activity.
Tech stocks and insurers rebounded after recent declines. Amazon, Micron, and AMD each climbed about 3%. Private-credit heavyweights KKR and Bridgewater also gained roughly 3% apiece, recovering some of last week’s sharp losses that had been driven by mounting concerns over vulnerabilities in the private credit sector.
