WASHINGTON (dpa-AFX) - After skyrocketing at the start of trading on Wednesday, stocks have given back some ground over the course of the session but remain sharply higher. The major averages are all posting significant gains after ending the previous session narrowly mixed.
Currently, the Dow is up 1,083.34 points or 2.3 percent at 47,667.80, the Nasdaq is up 565.07 points or 2.6 percent at 22,582.92 and the S&P 500 is up 139.84 points or 2.1 percent at 6,756.69.
The initial surge on Wall Street came in reaction to news that the U.S., Israel and Iran have agreed to a two-week ceasefire.
In a Truth Social post Tuesday evening, President Donald Trump said he has agreed to suspend the bombing and attack of Iran for a period of two weeks subject to Tehran agreeing to the complete, immediate and safe opening of the Strait of Hormuz.
Trump said the U.S. has received a 10-point proposal from Iran that he believes is a 'workable basis on which to negotiate' and said the two-week ceasefire will allow the agreement to be finalized and consummated.
A subsequent statement from Iran's Foreign Minister Abbas Araghchi indicated the Strait of Hormuz will be reopened for a period of two weeks if the attacks against Iran are halted.
The news has contributed to a nosedive by the price of crude oil, with U.S. crude oil futures plunging by more than 15 percent and dropping well below $100 a barrel.
'The positive market reaction is understandable as a two-week ceasefire raises hope for a complete end to the conflict,' said Dan Coatsworth, head of markets at AJ Bell.
'The ceasefire gives the world a moment to breathe and take stock of events,' he added. 'Unfortunately, there is no guarantee that everything will return to normal.'
Sector News
Airline stocks are turning in some of the market's best performances on the day, with the NYSE Arca Airline Index soaring by 8.8 percent to its best intraday level in a month.
Substantial strength is also visible among semiconductor stocks, as reflected by the 5.3 percent spike by the Philadelphia Semiconductor Index.
Housing stocks have also shown a significant move to the upside, driving the Philadelphia Housing Sector Index up by 4.8 percent.
Networking, computer hardware and financial stocks are also seeing considerable strength, while oil producer and natural gas stocks are bucking the uptrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Wednesday. Japan's Nikkei 225 Index spiked by 5.4 percent, while China's Shanghai Composite Index shot up by 2.7 percent.
The major European markets have also shown substantial moves to the upside on the day. The German DAX Index is up by 4.8 percent, the French CAC 40 Index is up by 4.5 percent and the U.K.'s FTSE 100 Index is up by 2.5 percent.
In the bond market, treasuries have moved significantly higher amid the steep drop by the price of crude oil. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.7 basis points at 4.266 percent.
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