The main US stock market indices rebounded on Wednesday after closing in the red in the previous session as America's ceasefire plan for Iran war eased crude oil prices.
S&P 500 opened 0.95% or over 62 points higher at 6,618.70, tech-heavy Nasdaq Composite jumped 1.17% or 254.08 points at open to 22,015.97, and Dow Jones Industrial Average gained 526 points at open, to trade 1.14% higher at 46,650.40.
Here is why the markets are rising:
Washington's 15-Point Peace Plan
Washington reportedly sent a 15-point peace plan to Iran for a potential ceasefire through Pakistan on Wednesday. While US is yet to publish any document referring to the 15-poin peace plan, US President Donald Trump had told reporters at the White House that Iran had made a valuable concession related to non-nuclear energy and the Strait of Hormuz, although he did not elaborate.
This however had eclipsed news the Iran rejected US ceasefire proposal and continued attacks on Israel and Gulf Arab states.
“Markets are positioning for a conflict resolution, despite lingering strategic ambiguity,” Elias Haddad at Brown Brothers Harriman & Co. told Bloomberg. “Ultimately, Iran's response to the US de-escalation pivot will decide whether peak fear is behind us or still ahead.”
ALSO READ: S&P, Nasdaq Jump 1% On White House's Iran Peace Plan, Dow Up 500 Points
Trump has been pushing for peace talks with Iran but those efforts have been clouded by uncertainty over the structure of negotiations. There's also been little sign of Iran backing down in the face of its relentless attacks.
Oil Prices
With Trump discussing peace plans with the 'right people' has pushed oil prices back down. Global benchmark, brent crude slumped 5% to trade at $95.25 a barrel, while West Texas Intermediate declined 4.87% to $87.88 per barrel.
Gold Prices
As investors weighed truce prospectus spot gold rose 2% to $4,566.86 an ounce.
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