The S&P 500 (^GSPC +1.18%) rose 1.18% to 6,967.38, the Nasdaq Composite (^IXIC +1.96%) gained 1.96% to 23,639.08, and the Dow Jones Industrial Average (^DJI +0.66%) added 0.66% to 48,535.99 as cooler wholesale inflation and tentative U.S.-Iran de-escalation hopes buoyed stocks.
Market movers
Micron Technology (MU +9.01%) soared as tech stocks rallied. Oracle (ORCL +4.74%) advanced after agreeing to buy fuel-cell power from Bloom Energy (BE +23.77%), which also gained.
Wells Fargo (WFC 5.70%) lagged on mixed earnings, while Citigroup (C +2.63%) beat analyst expectations. Geopolitical shifts boosted major U.S. airline stocks and helped power cyclical and tech leadership.
What this means for investors
Markets have largely erased losses from the U.S.-Iran-war after reports of a second round of peace talks boosted stocks today. WTI crude oil stayed below $100 a barrel, despite continued disruption in the Strait of Hormuz. This shows that investors are hopeful further talks may lead to a resolution.
Wholesale inflation data from the Bureau of Labor Statistics came in below expectations, suggesting that high energy costs may not drive prices up as much as people feared. This fueled a cautious risk-on mood on Wall Street, particularly for tech stocks.
For investors, today’s gains show the value of staying invested through turbulent times because it is almost impossible to predict when the recovery may come. That said, the conflict is not yet over, and the next round of negotiations may also fail, making it crucial to continue to manage risk.
Citigroup is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy, Micron Technology, and Oracle. The Motley Fool has a disclosure policy.