The main US stock market indices rallied on Wednesday after media reports renewed hope of a possible truce between Iran and Washington.
S&P 500 hit a new record high shortly after the opening bell and traded 0.64% higher at 7,305.42, Dow Jones Industrial Average gained over 500 points and traded 1.05% higher at 49,810.58.
Tech-heavy Nasdaq Composite rose over 1% at open, but erased some gains to trade 0.66% higher at 25,469.09.
Earlier in the day, an axios report had cited two US officials as saying that Washington is closing in on a possible deal with Iran. However, since then the Iranian Students' News Agency has pushed back against parts of a report by Axios, calling elements of it speculative and based on unverified information.
ALSO READ: US-Iran War To End? Tehran 'Evaluating' Trump's 14-Point Peace Proposal
The agency said the US proposal includes “ambitious and unrealistic” terms, adding that Tehran has already rejected such provisions in recent days.
According to the Axios report, Washington's 14-point memorandum of understanding includes aims to get the Strait of Hormuz back open, cap Iran's nuclear program, and get the US to drop its sanctions.
After the report surfaced, there was a sharp correction in the oil markets, with Brent crude slipping below the $100 per barrel mark, and West Texas Intermediate trading slumping to around $92 per barrel.
As of 9:46 a.m. EST, Brent erased some losses to trade 6.75% lower at $102.45 a barrel, while WTI traded 6.4% lower at $95.72 per barrel. On the other hand, Gold prices rose with spot gold up 3% to around $4,689.69 an ounce.
ALSO READ: Oil Slips Below $100: Brent Slumps Over 9% As US, Iran 'Close In' On Ending War
Separately, shares of advanced micro devices soared over 17% to $416 after carrying forward its Tuesday earnings cheer. The company revenue forecast was also beat market expectations.
The chipmmakers topline came in at $10.25 billion up 38% from 7.44 billion a year ago and exceeding the expectation of $9.89. Earnings per share stood at $1.37. For the second quarter, AMD said it expects about $11.2 billion in revenue, versus expectations of $10.52 billion, as per LSEG.
After the market opened, all but two sectoral indices traded in the red. Gains were led by the materials sector, the industrials sector and the information technology sector; whereas the energy sector along with the utilities sector traded lower.
The Dollar Spot Index fell 0.6%, while the euro rose 0.5% to $1.1751, British pound rose 0.5% to $1.3605 and the Japanese yen rose 1.1% to 156.21 per dollar.
Bitcoin, the largest traded cryptocurrency, rose 0.5% to $82,019.87.
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