The S&P 500 rose 0.9%, the Nasdaq gained 1.3%, and the Dow added 0.6% on Wednesday, marking a second straight day of gains to start the month as optimism grew over a potential resolution to the Middle East conflict. Sentiment improved after President Donald Trump said Iran had requested a ceasefire and signaled that US forces could withdraw from the region within weeks, contingent on the Strait of Hormuz remaining secure and fully operational.
The easing of geopolitical tensions drove crude futures lower as the risk premium in energy markets receded. Technology stocks led the advance: Alphabet climbed 2.8%, Micron Technology jumped 8.9%, and Meta and Amazon rose 1.4% and 1.1%, respectively. In contrast, Nike tumbled 15.6% after issuing subdued guidance.
Benchmark Treasury yields were little changed, even after new ADP data showed the private sector added 62,000 jobs in March, underscoring the resilience of the US economy. Investors now look ahead to a nationally televised address from the White House for further updates on the conflict with Iran.
