Major indices climb on lower crude prices and reduced Middle East tensions, easing inflation concerns and boosting market sentiment.
US stock indices opened sharply higher, led by the Dow Jones Industrial Average, which rose 1.23%. The NASDAQ gained 0.95%, or 242 points, while the S&P 500 advanced 0.81%. The rally follows a $5.40 drop in WTI crude oil, as traders unwind geopolitical risk premiums amid signs of de-escalation in the Middle East.
Reports of a pause in US military operations against Iran and Tehran’s restraint contributed to optimism. Lower oil prices reduce inflationary pressures, easing concerns about corporate margins and consumer spending. Energy-sensitive sectors, including airlines and retailers, outperformed as investors rotated back into growth stocks.
The decline in crude also alleviated fears of tighter Federal Reserve policy, supporting broader market gains. Premarket trading saw the NASDAQ up over 300 points before paring some gains.