Wall Street Rises on Hopes of U.S.-Iran Ceasefire; AMD, Intel Jump 7%+ [New York Market Briefing]

Wall Street’s three major indexes closed higher across the board. Expectations that the United States and Iran would enter ceasefire talks lifted investor sentiment broadly.

On the 25th (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended up 305.43 points (0.66%) at 46,429.49. The S&P 500 gained 35.53 points (0.54%) to 6,591.90, while the tech-heavy Nasdaq Composite added 167.93 points (0.77%) to close at 21,929.825.

In the market, expectations took shape that the U.S. and Iran would observe a ceasefire for a certain period and begin dialogue. The U.S. delivered Iran 15 conditions for ending the war and proposed a one-month ceasefire. Iran said it has no intention of holding talks with the U.S. but is reviewing the conditions it received.

In Israel, reports also emerged that U.S. President Donald Trump could abruptly declare a ceasefire in the Iran war as early as Saturday the 28th. Israel’s Channel 12 reported that the Israeli government is concerned Trump may declare a ceasefire before Washington’s demands for ending the war are met.

Keith Buchanan, chief portfolio manager at Globalt Investments, said, “The market is desperate for a clear explanation of where the war is headed,” adding, “If the war drags on, the Federal Reserve’s rate outlook would be the most vulnerable.”

U.S. low-cost carrier JetBlue surged more than 13% on news it is exploring a potential merger with a competitor. Micron fell 3.40% on the day, extending its decline to five consecutive sessions.

Among mega-cap tech companies with market capitalizations above $1 trillion, only Microsoft was slightly lower, while the group was broadly higher. AMD and Intel rose more than 7%.

According to the CME FedWatch Tool, the federal funds futures market priced in a 19.7% probability of a 0.25%-point rate hike by December. The prior session’s closing figure was 28.8%. The probability of rates being held steady was priced at 71.4%.

The CBOE Volatility Index (VIX) rose 1.62 points (6.01%) from the previous session to 25.33.

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com