Stocks Rise as Ceasefire Signals Ease Market Fears, Tech Leads Rally

Major U.S. indexes climb as investors respond to easing geopolitical tensions and strong tech performance.

By yourNEWS Media Newsroom

U.S. stock markets closed higher Wednesday, extending gains for a second consecutive session as investors reacted to signals from Donald Trump that a potential ceasefire in the Middle East conflict may be approaching.

Technology stocks led the rally, with shares of Alphabet Inc., Meta Platforms, and Amazon all posting gains. The broader S&P 500 rose 46.92 points, or 0.72%, to close at 6,575.44, while the Nasdaq Composite advanced 251.97 points, or 1.17%, to 21,842.59. The Dow Jones Industrial Average climbed 226.66 points, or 0.49%, ending at 46,568.17.

Markets have been buoyed by expectations that the ongoing conflict involving Iran could soon de-escalate, easing concerns over disruptions to global energy supplies. Recent tensions had driven oil prices higher, particularly as shipping through the Strait of Hormuz was affected, raising fears of inflation.

Oil prices pulled back sharply during the session, contributing to a nearly 5% intraday drop in the energy sector within the S&P 500. Airline stocks rose as lower fuel costs improved outlooks for the industry. Meanwhile, the CBOE Volatility Index declined to its lowest level in over a week, signaling reduced market anxiety.

Semiconductor shares also strengthened, with the PHLX Semiconductor Index advancing for a second straight day. Investor sentiment was further supported by news that SpaceX had confidentially filed for an initial public offering, lifting related space-sector stocks.

In corporate developments, Eli Lilly gained after the U.S. Food and Drug Administration approved its new weight-loss drug, to be marketed as Foundayo. Intel surged after announcing plans to repurchase Apollo Global Management’s stake in its Ireland manufacturing facility for $14.2 billion.

Not all companies participated in the rally. Nike fell to its lowest level in a decade after forecasting a decline in fourth-quarter sales.

Economic data released during the session showed steady growth in private payrolls for March, according to the ADP employment report, while retail sales recorded their strongest increase in seven months in February. Manufacturing activity also expanded, based on data from the Institute for Supply Management.

Despite improving sentiment, inflation concerns remain. Traders increasingly expect the Federal Reserve may raise interest rates later this year rather than cut them, reflecting persistent price pressures.

Investors are now turning their attention to the upcoming nonfarm payrolls report for March, though U.S. markets will be closed Friday in observance of the Good Friday.