US sharemarkets rallied on Wednesday, with the S&P 500 and Nasdaq Composite closing at fresh record highs after reports suggested the United States and Iran were nearing an agreement to end the war. The S&P 500 rose 1.46% to finish at 7,365.12, while the Nasdaq Composite climbed 2.02% to 25,838.94. The Dow Jones Industrial Average jumped 612 points, or 1.24%, ending the session at 49,910.59.
Reports indicated a potential agreement could include a moratorium on nuclear enrichment, while Iran’s foreign ministry said it was evaluating a US proposal. President Donald Trump later said a deal was not certain, describing Iran’s acceptance as a “big assumption”. Stocks pared some gains after the comments.
Technology stocks led the rally. Advanced Micro Devices surged 18.6% after beating expectations and issuing a stronger outlook for the second quarter. The result lifted chipmakers more broadly, with the VanEck Semiconductor ETF rising 5%, Intel gaining 4.5%, and Nvidia advancing 5.7%. Each of the Magnificent Seven stocks closed higher, while the NYSE Fang+ Index rose 1.3%.
Oil prices fell sharply as traders responded to signs of progress toward a potential agreement. West Texas Intermediate crude dropped 7.03% to US$95.08 a barrel, while Brent crude declined 7.83% to US$101.27.
Trump also paused “Project Freedom”, the US plan to guide ships out of the Strait of Hormuz, citing progress toward a final agreement. The US 10-year Treasury yield fell 8 basis points to 4.35%, while gold moved toward US$4,700 an ounce.
Australian Market Outlook
Australian shares are set to open higher, tracking strong gains on Wall Street. ASX 200 futures were up 95 points, or 1.1%, to 8,892.
Locally, results are expected from Orica and Light & Wonder. March trade data will be released at 11.30am AEST, followed by foreign reserves at 4.30pm. Overseas, the Bank of Japan will release minutes from its latest policy meeting, while Swedish policymakers are also set to meet.
