U.S. stocks ended higher on Wednesday, as reports of a potential agreement to end the Middle East conflict sent oil prices tumbling and bolstered investor sentiment alongside robust corporate earnings.
The Dow Jones Industrial Average rose 612.34 points, or 1.24 percent, to 49,910.59. The S&P 500 added 105.90 points, or 1.46 percent, to 7,365.12. The Nasdaq Composite Index increased by 512.81 points, or 2.02 percent, to 25,838.94.
Nine of the 11 primary S&P 500 sectors ended in the green, with industrials and technology leading the gainers by rising 2.60 percent and 2.56 percent, respectively. Meanwhile, energy and utilities led the laggards by dropping 4.07 percent and 1.45 percent, respectively.
Market optimism surged following media reports indicating that the United States believes it is nearing a memorandum of understanding with Iran to end the ongoing war.
Beyond the geopolitical developments, the broader equity rally was supported by a steady stream of corporate earnings beats. Roughly 85 percent of reporting S&P 500 companies have exceeded profit expectations this season, while approximately 77 percent have delivered upside revenue surprises.
In the technology sector, chipmaker Advanced Micro Devices and hardware manufacturer Supermicro saw their stocks surge following stronger-than-anticipated quarterly guidance.
Among other notable post-earnings movers, ride-hailing giant Uber jumped roughly 8.53 percent, while CVS Health and Walt Disney up 7.65 percent and 7.54 percent, respectively. Pharmaceutical firm Novo Nordisk gained nearly 2 percent, while Restaurant Brands International, the parent company of Burger King, fell 5.47 percent.
Semiconductor designer Arm Holdings soared 13.63 percent ahead of its after-hours earnings report, while AppLovin fell nearly 2 percent. Investors are now awaiting April's jobs data from consulting firm Challenger, Gray & Christmas, scheduled for release on Thursday.
U.S. stocks extend gains on Iran peace hopes, strong tech earnings
