Wall Street Extends Rebound, as Iran De-escalation Signals Strengthen
Major US stock indexes rallied on Wednesday (March 25th), extending this week's rebound, as signs emerged that US officials were working to de-escalate the conflict with Iran. The S&P 500, Dow, and Nasdaq 100 each rose more than 1%, reflecting a return to risk appetite amid a rapid shift in market sentiment.
The stock rally came as energy commodities pared this month's surge and the US bond market also improved. Reports that Washington was developing a plan to halt fighting in the Middle East helped foster a more benign inflation outlook, although Iran's response remained hawkish. A decline in benchmark bond yields provided additional support for stocks, as funding costs and the discount factor for valuations became lighter.
On Wall Street, nearly all sectors advanced, with the exception of energy producers, which were held back by the decline in energy commodity prices. With yield pressure easing, investors appeared to be increasing their exposure to riskier assets, while the market continued to weigh the conflict's continued impact on global supply chains and inflation.
Asset manager stocks are back in the spotlight amid a reassessment of the risk of a potential surge in redemption requests in private equity products. Apollo, Ares, and KKR recorded gains, in line with improving sentiment after pressure in the segment previously sparked concerns about liquidity stability.
In the technology sector, gains were led by ARM, which surged around 10% after announcing plans to sell its own chips. AMD and Intel also rose around 5% each after the announcement of price adjustment plans—giving a boost to chip stocks amid the risk-on rotation.
Source: Newsmaker.id
