The U.S.-Iran ceasefire delivered a much-needed dose of optimism
The Dow added over 1,300 points on Wednesday as the two week U.S.-Iran ceasefire delivered a much-needed dose of optimism. The Nasdaq also enjoyed a triple-digit pop, marking its sixth-straight gain alongside the S&P 500 -- their longest win streaks since January and October, respectively. Oil prices cooled as some vessels crossed the Strait of Hormuz, but Iran blocked oil tankers after Israel attacked Lebanon, with traffic yet to return to pre-war levels.
President Donald Trump said he received a 10-point proposal from Iran, which he plans to negotiate, and shared the U.S. will work to remove nuclear material from the country. As stocks basked in the relief rally, the Cboe Volatility Index (VIX) pivoted back lower.
Continue reading for more on today's market, including:
- Why bulls targeted Levi Straus stock today.
- Bank stock is in rally mode before earnings.
- Plus, AAL soaring; copper stock to watch; and what tends to happen when indexes correct.
5 Things to Know Today
- Meta Platforms (META) debuted its first major AI model, Muse Spark, as the company attempts to catch up to competitors in the AI space. (CNBC)
- Paramount Skydance (PSKY) President Jeff Shell is leaving his post amid an investigation into allegations he disclosed confidential information. (The Wall Street Journal)
- Ample tailwinds are blowing for American Airlines stock.
- The U.S.-Iran ceasefire boosted this copper stock.
- Is the 10% correction level arbitrary for stocks?
Gold Surges, Oil Plummets Amid Ceasefire
Oil prices fell on Wednesday, after Iran and the U.S. agreed to a two-week ceasefire and the temporary reopening of the Strait of Hormuz as negotiations to end the war continue. Front-month June-dated West Texas Intermediate (WTI) fell more than 16% to settle at $94.41 per barrel, its worst daily performance since April 2020.
Meanwhile, gold prices surge to a nearly three-week peak as inflation concerns eased in response to the ceasefire. The now most popular, June-dated gold contract added 2.6% to finish at $4,805.90 an ounce for the day.