Wall Street opened on a strong footing on Thursday in the aftermath of the US-Iran deal being formalised and correction in oil prices. S&P 500 and Nasdaq recovered sharply from Wednesday's Fed triggered selloff.
S&P 500 opened 1.19% higher at 7,508.44, tech-heavy Nasdaq Composite surged 1.5% at open to 26,425.68, and Dow Jones Industrial Average added nearly 400 points and opened 0.76% higher at 51,883.37.
US equity markets are cheering the official Memorandum of Understanding between America and Tehran, which was signed late Wednesday night (EST).
President Donald Trump said the agreement had been signed and would pave the way for a rapid reopening of the Strait of Hormuz, one of the world's most important energy chokepoints.
Post this, crude oil prices eased considerably, with brent crude falling to a low of $77 per barrel and West Texas Intermediate touching $73.9 levels. As of 9:54 a.m. EST, Brent Crude traded 2.64% lower at $74.09 and WTI was down 3.82% at $73.84 per barrel.
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The tech world also pared Wednesday's losses, thanks to Intel Corp. soaring more than 11% to a high of $135. The recovery came on the back of Donald Trump announcing that the semiconductor company had agreed to a deal with Apple
to design and build chips in the US.
Other chipmakers such as Micron Technology and AMD felt the rally's ripple and rose as high as 5% and 6% to $536 and $1,116 in trade so far.
In stark contrast to this, IT services and software companies bore the brunt of bears on account of Accenture's Q3 results and softer Q4 revenue guidance.
Accenture's stock dived over 20% to a low of $126 after the company narrowed its full year revenue forecast to a range of 3% to 4% in local currency and trimmed Q4 revenue forecast to between $17.75 billion and $18.4 billion, missing analysts' estimates of $18.47 billion.
Others followed suit, with Cognizant slumping 8% to $44.51 and Gartner slid over 2% to a low of $127.24.
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