Stock futures rose early Wednesday following a report that the U.S. and Iran were nearing an agreement to end the war.
Futures tied to the Dow Jones Industrial Average rose 544 points, or 1.1%. S&P 500 futures advanced 0.9%, while Nasdaq 100 futures climbed 1.6%.
Axios reported, citing sources, that the U.S. and Iran were getting close to a deal that would bring a resolution to the conflict. According to the report, the agreement would include a moratorium on nuclear enrichment. An Iranian foreign ministry spokesperson also told CNBC that Iran was evaluating a U.S. proposal toward a resolution.
President Donald Trump also said late Tuesday that he is pausing “Project Freedom,” the U.S.’s plan to guide ships out of the Strait of Hormuz. In a Truth Social post, he cited “the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran,” as a driver behind the decision.
Oil prices plunged as traders pared exposure on hopes the war would end soon. West Texas Intermediate futures dropped nearly 9% to around $93 per barrel. International Brent lost 7.7% to trade near $101.
Chipmaker Advanced Micro Devices added to the gains, soaring 16% after the company issued a rosy outlook for the second quarter. AMD also beat expectations on the top and bottom lines in the first quarter. The report lifted the broader chipmaker sector. The VanEck Semiconductor ETF (SMH) jumped 3.4%. Intel popped 5.9%.
Stocks posted strong gains Tuesday, lifted by strong earnings and the ceasefire between Iran and the U.S. remaining in place.
Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, said on CNBC’s “Closing Bell: Overtime” on Tuesday afternoon that stocks appear to be “climbing a wall of worry.”
“I think maybe perhaps people in the geopolitical world don’t understand what’s happening with the AI trade and earnings and how much of a buffer that is for S&P 500 EPS. So we’re continuing to see rates of upward revisions that are positive on that AI-related trade,” Calvasina said. “I’m not saying there’s a ton of room before we have a little bit of a breather, and we don’t think markets move up in a linear fashion. But I don’t think we’re overheated right now.”
European stocks soar as traders pounce on potential peace pact
European markets roared into the green on Wednesday, with the pan-European Stoxx 600 surging 2.1% following reports that U.S. and Iran could be nearing a deal to end the two-month-long conflict in the Middle East.
Major bourses in London, Paris, Frankfurt each soared more than 2% in mid-morning trade. Mining and autos stocks popped 4.5%, as banks and construction companies also notched strong gains.
But energy stocks went into reverse on the back of falling oil prices, as investors weighed up an Axios report claiming that the U.S. and Iran are working on a one-page, 14-point memo agreement to end the war.
The plan reportedly involves Iran committing to a moratorium on its nuclear enrichment plans in exchange for Washington pledging to lift sanctions and release billions in frozen Iranian funds, with both sides agreeing to lift restrictions around the Strait of Hormuz.
With a potential off-ramp coming into view, borrowing costs in the continent also fell. The yield on 10-year Gilts — the benchmark for U.K. government debt — dropped more than 8 basis points to 4.973%, while 10-year German bund yields were more than 6 basis points lower at 3.0027%.
A spokesperson for Iran’s foreign ministry told CNBC that Tehran is “evaluating” a 14-article peace proposal from the U.S.
— Hugh Leask
South Korea’s Kospi hits new high as Asia markets rise on Iran war de-escalation signals
South Korea’s Kospi closed at another record Wednesday as Asia-Pacific markets saw a broad rally, tracking Wall Street gains overnight after oil prices dropped and strong earnings lifted investor sentiment.
West Texas Intermediate futures for June were 1.51% lower at $100.73 per barrel as of 3:14 a.m. ET. Brent crude futures for July declined 1.48% to $108.23 per barrel.
South Korea’s Kospi advanced 6.45% to close at 7,384.56, building on its more than 70% annual gains as of last close, after markets resumed trading following a holiday. Index heavyweight Samsung Electronics reached a record high, rising over 14% to cross $1 trillion in market-cap.
The small-cap Kosdaq index slipped 0.29% to 1,210.17.
China’s CSI 300 added 1.45% to 4,877.09 as it resumed trading after Labor Day break. Hong Kong’s Hang Seng index rose 0.62%, while the Hang Seng Tech index gained 1.05%.
India’s Nifty 50 was flat. Australia’s S&P/ASX 200 rose 1.3% to close at 8,793.6.
Japan stock market was closed due to a holiday. The yen had strengthened more than 1% against the greenback to 156.15 earlier in the day.
—Justina Lee, Lee Ying Shan
South Korea’s Kospi tops 7,000 amid broad gains in other Asia markets
South Korea’s Kospi hit another record Wednesday as Asia-Pacific markets opened higher, tracking Wall Street gains overnight after oil prices dropped and strong earnings lifted investor sentiment.
The Kospi advanced 6.68% to scale a new peak, topping 7,000 as it builds on its more than 70% gains this year so far, after markets resumed trading following a holiday.
Index heavyweight Samsung Electronics reached a record high, rising over 15% to cross $1 trillion in market capitalization. SK Hynix also reached an all-time high, gaining more than 10%. The small-cap Kosdaq index slipped 0.88%.
China’s CSI 300 added 1.62% as it resumed trading after the Labor Day break. Hong Kong’s Hang Seng index rose 0.62%, while the Hang Seng Tech index gained 1.05%.
India’s Nifty 50 was 0.72% higher. Australia’s S&P/ASX 200 rose 0.87%.
Japan market was closed for a holiday.
West Texas Intermediate futures for June was 1.78% lower at $100.45 per barrel as of 11:40 p.m. ET. Brent crude futures for July declined 1.70% to $108.00 per barrel.
— Justina Lee
Stocks making the biggest moves after the bell: Advanced Micro Devices, Super Micro Computer and more
These are the stocks moving the most in extended-hours trading:
- Advanced Micro Devices — Shares popped 13% after the chipmaker issued strong guidance.
- Super Micro Computer — The server maker surged 18%. Expectations for fourth-quarter profit range from 65 cents to 79 cents per share, trouncing Wall Street’s call for 55 cents a share, per LSEG.
- Arista Networks — The cloud networking company dropped almost 12%. Adjusted gross margin narrowly missed expectations, coming in at 62.4% in the first quarter, versus the 62.7% anticipated by analysts polled by StreetAccount.
Read the full list of stocks moving here.
— Lisa Kailai Han
All 11 of the S&P 500 sectors end Tuesday higher
On Tuesday, all 11 of the GICS sectors ended the session higher.
Gains were led by materials and information technology stocks. The sectors respectively rose 1.67% and 1.63%.
On the other hand, the utilities and financials sectors both eked out increases of just 0.01%.
— Lisa Kailai Han
