The Dow Jones ended 600 points higher on Wednesday, and is now another 600 points away from its own record high of 50,512. The S&P 500 gained 1.5%, while the Nasdaq advanced 2%. Both S&P 500 and Nasdaq had another day of closing at record high levels. The S&P 500 closed above the mark of 7,350 for the first time, while the Nasdaq had a close near the 26,000 mark. The Dow is the only index that is yet to hit a record high during the course of the war.
Nine out of the 11 S&P 500 sectors have now turned positive on a year-to-date basis. The Philadelphia Semiconductor Index closed at record high levels on Wednesday. Financials and Healthcare are the only two underperformers so far this year. Clients at Bank of America purchased US equities worth $6.8 billion last week, according to a note.
Axios reported before market open on Wednesday that the US and Iran are close to finalising a one-page memorandum of understanding to end the war and set a framework for detailed nuclear negotiations later. While nothing is finalised and Iran is to respond over the next 48 hours, sources said that this is the closest both parties have been to a deal, according to the report.
The newsbreak sent risk assets surging globally with Indian markets also recovering from the day’s low and ending significantly higher in mid-week trading. Gold and Silver prices surged 3% and 6% respectively, while crude oil prices tumbled 7% each. Brent crude ended just above $101 a barrel, having briefly slipped below the mark of $100, while WTI closed just above $95 a barrel. The US Dollar has plunged to the pre-war lows, reversing all the gains made earlier.
The market also shrugged off an underwhelming private payrolls report from ADP, which showed that private payrolls increased by 1,09,000 in April, below estimates of 1,20,000 with only health services and education contributing to more than half of that growth.
Companies such as Shell, McDonalds and Airbnb report results for the quarter today. Alongside, the initial jobless claims and consumer credit data will also be reported.
