[New York Stock Market Briefing] US-Iran talks optimism lifts close…Nasdaq +0.5%

All three major US stock indexes closed higher in New York. The gains were seen as reflecting hopes for a ceasefire, with a deadline for the conclusion of negotiations to end the war between the United States and Iran just a day away.

On the 6th (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,669.88, up 165.21 points (0.36%) from the previous session. The Standard & Poor’s (S&P) 500 rose 29.14 points (0.44%) to 6,611.83, while the tech-heavy Nasdaq Composite gained 117.16 points (0.54%) to end at 21,996.34.

The market remained wary of the possibility of further escalation, but continued to hold onto optimism that the war would end soon through a diplomatic solution.

Reuters, AP and other foreign media reported that the United States and Iran had received a mediated proposal outlining a two-step approach: entering an initial 45-day ceasefire and then discussing a formal end to the war. President Donald Trump has set 8 p.m. ET on the 7th (9 a.m. Korea time on the 8th) as the deadline for reaching an agreement.

Invesco fell more than 5% on the day. The move was attributed to news that BlackRock filed paperwork with the US Securities and Exchange Commission (SEC) to run an exchange-traded fund (ETF) tracking the performance of the Nasdaq 100 index. Invesco manages QQQ, the profitable Nasdaq 100-tracking ETF.

US services sector activity in March slowed from the previous month and came in below market expectations. The Institute for Supply Management (ISM) said the March services Purchasing Managers’ Index (PMI) came in at 54.0, down 2.1 points from the prior month (56.1). It also fell short of the market forecast of 55.0.

In particular, attention focused on the ISM subindex for prices, which surged 6.6 points month on month to 70.7. It jumped to the highest level since October 2022 in the wake of the Iran war.

According to the CME FedWatch Tool from the Chicago Mercantile Exchange (CME), the federal funds rate futures market priced in an 11.0% probability that the policy rate would be raised by 0.25% point by December.

The CBOE Volatility Index (VIX) from the Chicago Board Options Exchange (CBOE) rose 0.30 points (1.26%) from the previous session to 24.17.

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