U.S. stock indices closed higher on Tuesday as traders shrugged off the initial collapse of peace talks between the U.S. and Iran, maintaining optimism that an agreement could still be reached. While oil prices declined, both U.S. stocks and bonds advanced. The Nasdaq Composite Index achieved its tenth consecutive day of gains, marking its longest winning streak since 2021.
In market specifics, the Dow Jones Industrial Average rose by 317.74 points, or 0.66%, to close at 48,535.99. The Nasdaq Composite climbed 455.35 points, or 1.96%, finishing at 23,639.08. The S&P 500 index gained 81.14 points, or 1.18%, settling at 6,967.38. Technology stocks once again provided significant support to the broader market. Oracle saw an increase of nearly 5%, extending its over 12% gain from the previous session. Nvidia and Palantir Technologies also continued their upward trajectory. The U.S. stock memory chip index closed up more than 2.4%, setting a record closing high for the fifth straight trading day. Micron Technology surged 9.17%, Rambus advanced 7.57%, while Western Digital, Seagate Technology, and Lam Research rose by up to 4.59%. SanDisk, however, dipped 0.84%.
European markets also finished positively. Germany's DAX 30 index increased by 1.27%, the UK's FTSE 100 rose 0.25%, and France's CAC 40 gained 1.12%. The Europe Stoxx 50 index was up 1.35%, and Spain's IBEX 35 climbed 1.46%.
In Asia, Japan's Nikkei 225 index jumped 2.43%, and South Korea's KOSPI index advanced 2.74%.
Cryptocurrency markets saw Bitcoin pare earlier gains after approaching $76,000, having risen nearly 4% at one point. Ethereum increased by 2.67%.
Oil prices experienced a sharp decline. Brent crude for June delivery fell by $4.57, or 4.60%, to settle at $94.79 per barrel. WTI crude for May delivery dropped $7.80, or 7.87%, to close at $91.28 per barrel.
The ICE U.S. Dollar Index dipped 0.24% to 98.130 in late New York trading. The Bloomberg Dollar Index fell 0.27% to 1193.27.
Precious metals rallied strongly. Spot gold rose 2.12% to $4,840.60 per ounce, while COMEX gold futures gained 2.02% to $4,863.80. Spot silver surged 5.30% to $79.6131 per ounce, and COMEX silver futures climbed 5.42% to $79.765.
On the macroeconomic front, the U.S. Vice President expressed optimism regarding the current state of U.S.-Iran relations, acknowledging significant distrust but suggesting progress is possible. Reports indicate the Vice President is expected to lead a potential second round of negotiations, with involvement from other key figures. The timing of a follow-up meeting remains undecided.
In a key step towards confirming the Federal Reserve Chair nomination, a confirmation hearing for nominee Kevin Warsh is scheduled for next week before the Senate Banking Committee. The hearing will focus on the economy, price stability, and Fed independence.
U.S. Producer Price Index data for March came in below expectations across the board. The headline PPI rose 4% year-over-year, the largest increase since February 2023 but below the forecast of 4.6%. Core PPI also missed estimates, suggesting that the energy price shock has not yet spiraled out of control.
U.S. Treasury Secretary Scott Bessent projected that U.S. economic growth could still exceed 3-3.5% this year, anticipating a "compensatory" growth surge after the conflict concludes, though he could not specify an end date.
European Central Bank President Christine Lagarde stated that rising energy costs have pushed the Eurozone economy away from the ECB's baseline scenario but clarified that the situation does not yet warrant a shift towards monetary tightening, emphasizing the priority of price stability.
In corporate news, Meta and Broadcom have deepened their chip collaboration, with Broadcom's CEO transitioning from Meta's board to an advisory role. Their extended partnership through 2029 supports the large-scale deployment of Meta's custom AI chips. Separately, Google is in talks with Marvell for TPU development and a specialized inference chip, diversifying its chip supplier base shortly after renewing a long-term agreement with Broadcom. Additionally, Amazon has agreed to acquire Globalstar and expand its satellite cooperation with Apple, aiming to integrate satellite assets into its low-earth orbit network and provide satellite services for Apple device users.
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