Dow Rises on Trump’s Peace Plan as Oil Plummets and Chip Stocks Soar (Live)

Market Gains and Semiconductor Outperformance

The U.S. stock market saw a positive start on Wednesday, with major indices like the Dow Jones Industrial Average and the S&P 500 rising in early trading. This surge came after the U.S. reportedly sent a peace plan to Iran, which eased some concerns about potential geopolitical tensions. The Nasdaq Composite also showed strength, although gains were slightly tempered later in the session.

The Dow Jones Industrial Average opened with a 1.2% increase but then pulled back to around 0.7%. Similarly, the S&P 500 initially gained 1.1% before settling at a 0.6% rise. The Nasdaq Composite, however, managed to maintain a more consistent upward trend, closing up 0.9% after an initial 1.5% gain in morning trading.

In contrast, small-cap stocks on the Russell 2000 outperformed, rising over 1.5%. This aligns with Tuesday’s observations of strong performance from small-cap and cyclical stocks, including firms in natural gas and transportation sectors.

Interest Rates and Oil Prices

One key factor influencing the market was the drop in the 10-year Treasury yield, which fell to 4.35% early Wednesday. This decline in interest rates is seen as a positive for equities, as lower borrowing costs can support corporate earnings. However, the cost of money has been rising steadily, raising concerns among investors about future economic conditions.

Oil prices experienced a sharp decline, falling more than 4% to below $89 a barrel. This drop was attributed to reduced fears of supply disruptions following the reported U.S. peace plan to Iran. Meanwhile, international benchmark Brent crude also fell, dropping to around $98.70 per barrel.

Bitcoin also saw a significant move, climbing to approximately $71,500.

Semiconductor Stocks Shine

Several semiconductor companies stood out in the market, with shares of major players like Marvell Technology (MRVL) and Advanced Micro Devices (AMD) seeing strong gains.

Marvell Technology opened sharply higher, gaining over 4% after clearing a key technical pattern known as a double bottom with a handle buy point at $95.05. The stock is currently within a 5% buy zone, with resistance at $99.80.

The VanEck Semiconductor ETF (SMH) rose 0.7%, showing signs of breaking through its 50-day moving average. Advanced Micro Devices (AMD), a leader in artificial intelligence data center chips, jumped over 5% after re-taking its 50-day line for the first time since February 3.

Despite these gains, AMD is still in the early stages of forming a new base, suggesting that further consolidation may be needed before a stronger uptrend can develop.

Key Stock Performers

Among the Nasdaq 100 stocks, several companies saw notable movements. Bitcoin-focused firm MicroStrategy (MSTR) and Intel (INTC) both surged over 4% in early trading, making them standout performers. On the other hand, Western Digital (WDC) and Micron Technology (MU) faced selling pressure, declining by roughly 5% in morning trading.

Inside the Dow Jones Industrial Average, Amazon (AMZN), Nvidia (NVDA), and Apple (AAPL) all contributed to the index’s gains. Amazon rebounded from Tuesday’s losses, rising 1.5%, while Nvidia added 1.3% and Apple climbed 0.8% in premarket trading. Chevron (CVX), however, declined over 1%, threatening to end a seven-day winning streak.

Geopolitical Developments and Market Impact

According to reports from the New York Times and Associated Press, the U.S. sent a 15-point peace plan to Iran via Pakistan. The proposal included nuclear and missile restrictions, as well as access to the Strait of Hormuz, in exchange for sanctions relief. An Israeli media outlet also reported that the U.S. is proposing a one-month ceasefire.

Iran has publicly denied engaging in any talks, and the country has made several uncompromising demands that the U.S. has deemed unrealistic.

Earnings and Other Market Movements

Wednesday’s market also saw several earnings-related movements. Chewy (CHWY) jumped nearly 7% in early trading, while GameStop (GME) lost 0.1%. Paychex (PAYX) climbed over 2%, and PDD Holdings (PDD) rose nearly 3% in premarket trading.

Arm Holdings (ARM) surged over 12% after announcing a new AI data center chip that could generate $15 billion in annual revenue by 2031.

Additional Market Insights

Other notable developments include the ongoing volatility in the Middle East, which has impacted energy markets and influenced investor sentiment. Companies involved in natural gas and technology are particularly sensitive to these global dynamics.

For those interested in tracking growth stocks and broader market trends, following industry analysts on platforms like X can provide valuable insights.