Stocks jumped on Wednesday as oil prices and U.S. Treasury yields slid amid growing optimism that the conflict in the Middle East could soon be resolved. Traders also looked ahead to the release of Nvidia’s first-quarter earnings report.
The Dow Jones Industrials shot higher 645.65 points, or 1.3%, to 50,009.53.
The S&P 500 index jumped 79.28 points, or 1.1%, to 7,432.89.
The NASDAQ rebounded 399.65 points, or 1.6%, to 26,270.36.
West Texas Intermediate futures shed 5.66% to close at $98.26 per barrel. Brent crude pulled back 5.63% to settle at $105.02 a barrel.
That’s after President Donald Trump told reporters the administration was in the “final stages” of negotiations with Iran, per a pool report.
Treasury yields also cooled following the developments. The 10-year Treasury yield dropped more than eight basis points on Wednesday, and the 30-year Treasury yield shed six basis points. (one basis point equals 0.01%.).
Investors are also turning their attention toward Nvidia, which reports its first-quarter earnings after the close. The report will be an important view into the artificial intelligence trade and provide the latest update on demand for chips. Shares of the company were last 2% higher.
The stock has risen 20% this year, and experts noted that while there is skepticism build into the chipmaker and AI darling, especially given its massive run of more than 1,400% in the last five years, expectations are “somewhat muted” going into the report.
Prices for the 10-year Treasury climbed sharply. lowering yields to 4.57% from Tuesday’s 4.67%. Treasury prices and yields move in opposite directions.
Oil prices caved $5.89 to $98.26 U.S. a barrel.
Gold prices gained $38.70 to $4,550.30 U.S. an ounce.
