The Dow added over 1,300 points on Wednesday as the two week U.S.-Iran ceasefire delivered a much-needed dose of optimism. The Nasdaq also enjoyed a triple-digit pop, marking its sixth-straight gain alongside the S&P 500 -- their longest win streaks since January and October, respectively. Oil prices cooled as some vessels crossed the Strait of Hormuz, but Iran blocked oil tankers after Israel attacked Lebanon, with traffic yet to return to pre-war levels.
President Donald Trump said he received a 10-point proposal from Iran, which he plans to negotiate, and shared the U.S. will work to remove nuclear material from the country. As stocks basked in the relief rally, the Cboe Volatility Index (VIX) pivoted back lower.
Gold Surges, Oil Plummets Amid Ceasefire
Oil prices fell on Wednesday, after Iran and the U.S. agreed to a two-week ceasefire and the temporary reopening of the Strait of Hormuz as negotiations to end the war continue. Front-month June-dated West Texas Intermediate (WTI) fell more than 16% to settle at $94.41 per barrel, its worst daily performance since April 2020.
Meanwhile, gold prices surge to a nearly three-week peak as inflation concerns eased in response to the ceasefire. The now most popular, June-dated gold contract added 2.6% to finish at $4,805.90 an ounce for the day.
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