U.S. stocks rose sharply Wednesday as oil prices steadied and new economic data signaled resilience in hiring and business activity despite uncertainty surrounding the Iran conflict.
By yourNEWS Media Newsroom
U.S. financial markets rallied Wednesday after early volatility eased, with major indexes climbing as oil prices stabilized and new economic reports suggested continued strength in key sectors of the American economy.
The S&P 500 advanced 0.8%, recovering much of the ground it had lost since hostilities began between the United States, Israel, and Iran. The Dow Jones Industrial Average gained 0.5%, while the Nasdaq composite led the rebound with a 1.3% increase.
The gains followed a turbulent start to global trading earlier in the day. South Korea’s Kospi index plunged 12.1%, marking the steepest single-day drop in its history and highlighting the anxiety gripping global markets amid escalating geopolitical tensions.
Investors throughout the week have closely tracked movements in oil prices, which surged as the conflict intensified. Those concerns eased somewhat Wednesday as trading moved from Asian markets into Europe and then to North America.
Brent crude, the international benchmark, briefly climbed above $84 per barrel before retreating to settle at $81.40, roughly the same level recorded the previous day. U.S. benchmark crude rose slightly by 0.1% to close at $74.66 per barrel.
Market sentiment was also lifted by encouraging economic indicators released during the day.
One report indicated that business activity in service sectors such as finance, real estate, and other professional services accelerated in February, marking the fastest pace of expansion since the summer of 2022. The report also suggested that price increases among those businesses were slowing prior to the outbreak of the Iran conflict, a development viewed as favorable for inflation.
A second report showed that private-sector employers increased hiring during the previous month, raising expectations for the broader labor market report scheduled for release by the federal government on Friday.
Despite the rally, uncertainty about the duration and economic consequences of the Iran conflict continues to influence trading.
Financial markets are closely watching whether sustained increases in oil prices could drive inflation higher and reduce corporate profits. Historically, U.S. markets have often recovered relatively quickly from Middle East conflicts, provided energy prices do not rise significantly.
Some investors, however, remain skeptical about the outlook.
“I think the Iran situation is getting out of hand, and I think that U.S. President Donald Trump miscalculated enormously,” said Francis Lun, chief executive of Venturesmart Asia. “The situation is very grim.”
Technology companies and cryptocurrency-related firms were among the strongest contributors to Wednesday’s market rebound.
Shares tied to the digital currency industry surged as bitcoin rebounded toward $74,000. Coinbase Global climbed 15.3%, while Robinhood Markets rose 8.3%.
Retail and travel companies also posted gains as investors expressed optimism that a resilient economy and stabilizing fuel prices could support consumer spending. Ross Stores rose 7% after reporting stronger-than-expected quarterly profit and revenue and stating it entered 2026 with “solid momentum.” Expedia Group increased 3.1%.
Large technology firms provided additional upward momentum for the market. Nvidia rose 2%, and Amazon gained 4%. Because of their substantial market capitalization, movements in those companies carry significant influence on the S&P 500.
Overseas markets showed mixed results. European indexes rebounded after earlier losses in Asia, with France’s CAC 40 increasing 0.8% and Germany’s DAX climbing 1.7%. Earlier in the day, Hong Kong’s Hang Seng had dropped 2%, while Japan’s Nikkei 225 declined 3.6%, in addition to South Korea’s sharp selloff.
In the bond market, Treasury yields edged slightly higher. The yield on the 10-year U.S. Treasury rose to 4.08%, up from 4.06% late Tuesday.
The stronger economic reports provided welcome news for the Federal Reserve, which is tasked with maintaining a healthy labor market while controlling inflation.
However, the surge in oil prices linked to the conflict has complicated the central bank’s outlook. Rising energy costs can push inflation higher, potentially delaying the Federal Reserve’s plans to begin lowering interest rates later this year.
Higher borrowing costs, if maintained for longer, could weigh on consumer spending and corporate investment. Because of the conflict and energy market volatility, traders have pushed back their expectations for when the central bank might begin cutting rates, with many now anticipating the move later in the summer.
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