Stocks rose in a choppy session on Wednesday as investors weighed signs of potential de-escalation in the war with Iran against new uncertainty that kept markets moving hour to hour. The S&P 500 climbed 0.5% in its latest shift higher after a morning surge that topped out at 1.2% before the index briefly neared erasing those gains. The Dow Jones Industrial Average finished up 305 points, or 0.7%, and the Nasdaq composite rose 0.8%, even as the trading pattern reflected how quickly expectations were changing.
The day’s optimism was tied to hopes for a possible end to the war, according to coverage of a U.S. plan to pause hostilities with Iran. At the same time, moves in equities were described as shaky, with reversals that struck repeatedly as investors tried to gauge how long the war would last. Global markets also showed that split between relief and caution: indexes climbed more than 1% in London, Paris and Shanghai, and Tokyo’s Nikkei 225 jumped 2.9%, but stocks gave back some of the prior day’s gains.
Oil prices provided another signal of shifting expectations. The price for a barrel of Brent crude delivered in June fell 3% to settle at $97.26, with investors describing hopes that a cooldown in fighting could allow oil and natural gas to flow more freely from the Persian Gulf. The reporting noted that many oil tankers were stuck outside the Strait of Hormuz off Iran’s coast, a blockage that had at times pushed Brent to nearly $120 per barrel earlier during the conflict.
In bond markets, Treasury yields eased, a development that the report said could reduce pressure on borrowing costs that affect mortgages and other forms of credit. The yield on the 10-year Treasury fell to 4.32% from 4.39% late Tuesday, while still remaining well above a pre-war level of 3.97% cited in the story. Even gold, which had been one of the investment world’s worst performers during the war period, rose on the day; it increased 3.4% to settle at $4,552.30 per ounce after earlier trading this month had brought it near $5,400.
The report also pointed to company-specific and sector-driven moves alongside the macro backdrop. Arm Holdings surged 16.4% after the U.K. company announced chips aimed at data centers and artificial-intelligence technology, while Robinhood Markets rallied 5% after its board authorized a program to send up to $1.5 billion to shareholders through stock buybacks. Terns Pharmaceuticals rose 5.7% after Merck said it would buy the oncology company in an all-cash deal valuing it at $6.7 billion, with Merck up 2.6%.
Not all trading reflected the day’s broader risk-on mood. On Holding, the Swiss maker of On shoes, fell 11.2% after saying its chief executive officer, Martin Hoffmann, is stepping down. In Hong Kong, Pop Mart International Group tumbled 22.5% after reporting profit and revenue growth that was described as not meeting analysts’ expectations, following explosive growth tied to its Labubu dolls. Separately, the report said the stock prices for the parent companies of YouTube and Instagram were relatively steady after a jury found them liable in a first-of-its-kind lawsuit focused on harm to children using their services, with Alphabet up 0.2% and Meta Platforms up 0.3%.
The mixed market picture came as the conflict’s operational details continued to shift. The report said Iran launched more attacks on Israel and Gulf Arab countries, including an assault that sparked a huge fire at Kuwait International Airport, while Iran also came under attack. It also said the U.S. military deployed paratroopers and more Marines to the region.
Despite the market response to the pause-hope narrative, the report cited Iran’s refusal to engage in negotiations. Iran’s foreign minister, Abbas Araghchi, said in an interview with Iranian state TV that his government has not engaged in talks to end the war and that it does not plan negotiations, a message that underscored the uncertainty investors appeared to be pricing.
All told, the S&P 500 rose 35.53 points to close at 6,591.90. The Dow Jones Industrial Average gained 305.43 points to 46,429.49, and the Nasdaq composite climbed 167.93 points to 21,929.83.