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Stocks rose on Wednesday, building on the momentum seen late in the previous session, as oil prices retreated following developments in the U.S.-Israeli war on Iran and fears about a U.S. economic growth scare faded.
The Dow Jones Industrial Average rocketed 337.54 to 48,838.81.
The much broader index regained 60.68 points to 6,877.31.
The NASDAQ surged 327.21 points, or 1.5%, to 22,844.78.
A couple of strong economic data releases bolstered sentiment among investors Wednesday. Firstly, ADP reported that private sector companies added more jobs than anticipated in February. On top of that, the U.S. nonmanufacturing sector recorded better-than-expected growth last month with easing inflation pressures.
The positive reaction to the data occurred alongside the recent rally in oil prices continuing to lose steam. Treasury Secretary Scott Bessent told the media on Wednesday that the U.S. is going to make “a series of announcements” to support the flow of oil through the Persian Gulf.
The move comes after President Donald Trump said that the U.S. would provide risk insurance to all maritime trade through the Gulf in an effort to get tankers moving through the Strait of Hormuz.
Tanker traffic through the Strait — the world’s most vital transit route for crude oil — came to a halt after the Iranian Revolutionary Guard commander threatened to set fire to ships attempting the route.
Prices for the 10-year Treasury weakened, hiking yields to 4.07% from Tuesday’s 4.06%. Treasury prices and yields move in opposite directions.
Oil prices dipped 53 cents to $74.03 U.S. a barrel.
Gold prices regained $35.40 to $5,159.10 U.S. an ounce.
