US sharemarkets extended their rally on Thursday, with all three major indices finishing higher as investors continued to respond to a two-week ceasefire between the United States and Iran. The S&P 500 rose 0.62% to 6,824.66, while the Nasdaq Composite gained 0.83% to 22,822.42. The Dow Jones Industrial Average added 275.88 points, or 0.58%, to 48,185.80, turning positive for the year.
The advance follows a sharp rebound earlier in the week, when all three indices rose more than 2% on Wednesday, with the Dow recording its strongest session since April 2025. Gains on Thursday were supported by strength in large-cap technology and defensive sectors. Meta Platforms rose 2.6% following the release of a new artificial intelligence model, while retailers and utilities also advanced.
Oil and macro
Oil prices continued to rise, although they retreated from intraday highs. West Texas Intermediate crude settled up more than 3% at US$97.87 a barrel after briefly moving above US$100, while Brent crude rose more than 1% to US$95.92.
The ceasefire agreement is contingent on the reopening of the Strait of Hormuz, though traffic through the waterway remains limited. Reports indicate only partial movement of non-oil vessels, highlighting ongoing disruption to global energy supply routes.
Australian Market Outlook
Australian shares are set to edge lower at the open, despite gains on Wall Street, as investors weigh ongoing uncertainty around the ceasefire and energy markets. S&P/ASX 200 futures were down 8 points to 8,995.
Locally, attention will be on regional and global data. BusinessNZ will release its March manufacturing PMI, while China is set to report March inflation data. In the United States, March CPI is due later in the session, providing further insight into inflation trends.
