Wall Street jumps on prospects of de-escalation in Middle East war, crude oil & Treasury yields fall

US stock indices jumped on Wednesday on prospects of de-escalation in the Middle East conflict after Washington proposed a peace plan to Iran.

As of 10:30 a.m. Eastern Time, the S&P 500 rose 0.8%, the Dow Jones Industrial Average was up 0.7%, and the Nasdaq Composite was 1.3% higher.

At the opening bell, the Dow Jones Industrial Average rose 190.2 points, or 0.41%, to 46,314.24. The S&P 500 rose 42.0 points, or 0.64%, to 6,598.35, while the Nasdaq Composite rose 244.5 points, or 1.12%, to 22,006.428.

According to media reports, the United States has delivered a 15-point peace proposal to Iran through Pakistani intermediaries. However, Iranian officials have publicly rejected the idea of talks.

"Right now the big attention for the market is on whether we get a ceasefire or not between the US and Iran," said Adam Sarhan of 50 Park Investments, according to AFP.

"It might not be immediate, but eventually cooler heads will prevail," said Sarhan.

Crude oil valuations decreased amid optimism that a de-escalation in conflict could facilitate the unhindered movement of energy tankers from the Persian Gulf to international markets. Consequently, Brent crude dropped 5.4% to $94.78 per barrel on Wednesday.

Currently, numerous oil vessels remain stranded outside the Strait of Hormuz near Iran, a disruption that previously pushed Brent prices toward the $120 threshold.

Market participants remain skeptical, noting that Washington’s diplomatic push coincides with the deployment of thousands of additional US troops to the Middle East, even as Iran and Israel continue to exchange heavy missile fire.

In the bond market, the yield on the 10-year Treasury fell to 4.33% from 4.39% late on Tuesday.

Key Stock Movers

Shares of Norwegian Cruise Line Holding climbed 4.2%, and United Airlines gained 4%.

Robinhood Markets stock soared 7.1% after the company’s board authorized a program to send up to $1.5 billion to shareholders by buying back the stock.

Arm Holdings shares surged 16% following the unveiling of the company’s first-ever AI processor designed and manufactured entirely in-house.

EchoStar stock rose over 8% amid reports that SpaceX is preparing to file for an IPO. EchoStar, which recently sold several billion dollars' in spectrum rights to SpaceX, holds a significant equity stake in the Elon Musk's space firm.

Bullion Market

Gold prices gained on Wednesday, buoyed by a drop in oil prices amid uncertainty surrounding the Middle East conflict.

As of 11:10 a.m. EDT (1300 GMT), spot gold rose 1.8% at $4,554.97 per ounce. US gold futures for April delivery jumped 3.5% to $4,553.60.

Among other metals, spot silver added 2.1% to $72.75, platinum gained 0.8% to $1,949.65, while palladium fell 0.7% to $1,429.35.