Hopes of a potential peace deal soon between the US and Iran, and a softer-than-expected Wholesale inflation print, contributed to the recovery.
The Dow Jones ended with gains of another 300 points, adding to a 300-point surge on Monday as well. The S&P 500 has gained 150 points in the last two sessions, while the Nasdaq has outperformed its peers with a surge of over 700 points across Monday and Tuesday. The Nasdaq also rose for the tenth straight session on Tuesday, its longest winning streak since 2021.
With this, all three benchmark indices, which had slipped into or were close to “correction territory” (a 10% fall from the peak), have turned positive for the year again.
According to a Bloomberg report, both US and Iran are pushing for more talks before the 14-day ceasefire expires next week. A report from the New York Times suggested that the US has proposed a 20-year ban on Uranium enrichment for Iran, while the latter countered with a five-year pause proposal.
US President Donald Trump also told the New York Post that something may happen over the next two days and that they are more inclined to go back to Pakistan, who hosted the 21-hour negotiations last week, which failed to reach a conclusion.
On the other hand, the Producer Price Index data for March was better-than-expected, although the overall figure on an annualised basis still remains at elevated levels. PPI for March rose 0.5% month-on-month, well below consensus estimates of a 1.1% increase, while core PPI, which excludes energy costs, rose only 0.1%, lower than the 0.5% projection. On an annualised basis, PPI rose 4%, while core PPI was up 3.8%, marking the biggest 12-month increase since February 2023.
Major banks on Wall Street reported results over the last two days, with Goldman Sachs reporting mixed results, while Citigroup and JPMorgan reporting record trading revenue. Wells Fargo missed expectations, leading to the stock tumbling 6%, underperforming a strong market. Results from lenders like Bank of America and Morgan Stanley are expected later today.
Oil prices fell on hopes of further Iran talks, with Brent falling to levels of $95 a barrel, while West Texas Intermediate (WTI), declining to levels of $90 a barrel in early Asian trading. The US Dollar index also fell for the seventh straight session.
