The main US stock market indices rode the Iran ceasefire wave and soared high to clock major gains on Wednesday.
The S&P 500 jumped 2.56% or 170 points to 6,786.49, Dow Jones Industrial Average added nearly 1,400 point to trade 2.8% higher at 47,893.23, while tech-heavy Nasdaq composite registered a sharp jump of nearly 4% or 800 point to 22,817.34.
As of 10 a.m. EST, Dow was up 2.7% at 47,865.68, S&P 500 traded 2.3% higher at 6,771.9, and Nasdaq traded at 22,643.08, 3% higher.
After weeks of consistent uncertain cues on the Iran war, Donald Trump announced a two‑week ceasefire with Iran earlier in the day.
Separately, Iranian Foreign Minister Seyed Abbas Araghchi indicated that transit through the Strait of Hormuz could be permitted during this period, provided the United States suspends all military actions against the Islamic Republic.
After the market opened, all but two of the sectoral indices traded in the green. Gains were led by the consumer discretionary sector, information technology sector, communication services sector, and industrials sector, all of which surged over 3%.
The only significant losses were seen in the energy sector, which declined over 5%, while the utilities sector traded 0.09% lower.
ALSO READ: Gold, Silver Rally Sharply As US-Iran Ceasefire Lifts Global Market Sentiment
Solid gains were clocked by big tech stocks, every one of the magnificent seven trading higher. The highest jump was seen Meta Platforms Inc., which rose nearly 5% to trade at $602.80, followed by Google-parent Alphabet Inc. which traded 4.05% higher at $317.57.
Shares of bellwether chipmaker Nvidia Corp. rose 3.17% to trade at $183.75 and Amazon.com Inc saw a 3.04% jump in its share price to $220.07.
Similarly, Apple Inc. rose nearly 2% higher to $258.51, Tesla Inc. traded 2.56% higher at $354.94, and Microsoft Corp. also rose 2% to trade at $379.55
Oil prices shaw a sharp correction after the Strait of Hormuz was opened. As of 9:55 a.m. EST, global benchmark brent crude was trading nearly 16% lower at $92.10 per barrel, while the West Texas Intermediate traded 18% lower at $92.84 a barrel.
The dollar spot index diplayed weakness against global currencies and fell 1%, while the euro rose 0.9% to $1.1704, the British pound rose 1.3% to $1.3465, and the Japanese yen rose 1% to 158.10 per dollar.
Bitcoin, the largest traded cryptocurrency, rose 4.4% to $72,359.57.
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