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Stocks rose for a second day on Thursday, even as oil prices gained, amid continued optimism among traders that the fragile two-week ceasefire between the U.S. and Iran could be sustained.
The Dow Jones Industrials popped 269.03 points to 48,178.95.
The S&P 500 recovered 40.63 points to 6,823.44.
The NASDAQ hiked 161.64 points to 22,796.63.
The S&P 500 traded into the green and oil prices came off their highs of the day after Israeli Prime Minister Benjamin Netanyahu said that the country has agreed to open direct negotiations with Lebanon.
Iran’s parliamentary speaker Mohammad Bagher Ghalibaf had called Israel’s continued attacks on Lebanon a violation of the ceasefire agreement.
The broad market index was also supported by a more than 2% move higher in shares of Meta Platforms on the heels of the company debuting its new artificial intelligence model. Defensive areas of the market rose as well, as shares of Walmart increased along with utilities names such as Constellation Energy
The “double-sided” ceasefire, however, was contingent on Iran agreeing to reopening the strait. Tehran agreed to reopen the waterway for the next two weeks as long as all attacks are halted, according to a statement from Iran’s Foreign Minister. Media reports said that Israel has also agreed to the ceasefire.
U.S. military forces will remain deployed in and around Iran until Tehran fully complies with the “real agreement,” Trump said Wednesday, warning that any breach would trigger a military response larger than anything seen before.
Meanwhile, overall traffic through the strait has still not improved since the ceasefire deal was announced, as only some bulk carriers — which carry dry cargo rather than oil — have traversed the key waterway.
Prices for the 10-year Treasury hiked, weighing yields to 4.29% from Wednesday’s 4.30%. Treasury prices and yields move in opposite directions.
Oil prices gained $3.17 to $97.58 U.S. a barrel.
Gold prices leaped $40.20 to $4,817.40 U.S. an ounce.
