Highlights
Stocks advanced Wednesday as oil prices pulled back and reports emerged that the US had sent Iran a 15-point peace proposal to end the war. The Dow gained 0.7 percent, the S&P 500 rose 0.5 percent and the Nasdaq finished up 0.8 percent. Bond yields declined while oil prices slumped. Gold rose more than 2 percent and the dollar edged higher.
The peace plan, reportedly delivered through Pakistan, raised hopes that the conflict could wind down even as Iran publicly rejected the proposal and continued military strikes. US import price data showed a 1.3 percent jump in February, the largest monthly gain in nearly four years, underscoring pipeline inflation pressures building even before the energy shock.
All sectors except energy moved higher as the pullback in crude eased inflation fears. Tech stocks rose broadly, led by Arm Holdings which surged more than 16 percent after announcing plans to sell its own chips. AMD and Intel each rose about 7 percent. Small caps outperformed again with the Russell 2000 up 1.2 percent.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.