The Dow Jones Industrial Average rose 675 points, or 1.4 percent. The S&P 500 gained 1.4 percent, while the Nasdaq Composite gained 1.8 percent, SEEbiz reports.
Axios, citing sources, reported that the US and Iran are close to an agreement that could resolve the conflict. According to the report, the agreement would include a moratorium on nuclear uranium enrichment. An Iranian Foreign Ministry spokesman also told CNBC that Iran is considering the US proposal for a solution.
President Donald Trump later said on Wednesday that the deal was not certain, saying it was “maybe a big assumption” to expect Iran to accept the US proposal. Markets pulled back from daily highs after the statement.
Trump also announced late Tuesday that he was pausing Project Freedom, the U.S. plan to conduct ships through the Strait of Hormuz. In a post on Truth Social, he cited “the fact that great progress has been made toward a full and final agreement with representatives of Iran” as the reason for the decision.
Oil prices fell as traders reduced exposure on hopes the war could soon end. West Texas Intermediate futures fell 6 percent to trade above $95 a barrel. International Brent crude lost 7 percent to trade above $101.
Chipmaker Advanced Micro Devices (AMD) continued its rise, jumping 17 percent after the company issued an upbeat second-quarter outlook. AMD also beat expectations for both total revenue and net profit in the first quarter.
The report boosted the chipmaker sector as a whole. The VanEck Semiconductor ETF rose 4 percent, while Intel gained 2 percent.
Stocks continued to rise strongly on Tuesday, boosted by good business results and the ceasefire between Iran and the US that remained in place.
