[New York Stocks] All Major Indexes Open Higher on One-Month Ceasefire Proposal... Tech Stocks Lead the Rally

Brent Crude Falls Below $100 as Oil Prices Drop

Tech Stocks Rally, Driving Index Gains

New York Stock Exchange. Photo by Yoonjoo Hwang

The U.S. stock market is fluctuating in response to headlines related to the Iran war. On March 25 (local time), all three major U.S. stock indexes opened higher, as international oil prices plummeted following news that the United States had presented a ceasefire and negotiation proposal to Iran.

At 10:03 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was up 293.89 points (0.64%) from the previous trading day, recording 46,417.95. The S&P 500, which focuses on large-cap stocks, rose 41.33 points (0.63%) to 6,570.70, while the tech-heavy Nasdaq was trading at 21,974.34, down 212.44 points (0.97%).

According to a report by the Associated Press, citing sources, Iran received a 15-point peace plan from the United States aimed at ending the war. The New York Times explained that the United States delivered the peace plan to Iran via Pakistan, which is acting as an intermediary.

However, it has been reported that there are significant differences between Iran and the United States regarding some elements of the peace plan. Alongside negotiations, the United States is also applying military pressure. On the previous day, the U.S. Department of Defense announced plans to deploy the elite 82nd Airborne Division to the Middle East region.

West Texas Intermediate (WTI) crude oil was trading at $88.43 per barrel, down 4.22% from the previous session. Brent crude, the global oil price benchmark, plunged 4.39% to $99.96 per barrel. After the proposal for a one-month ceasefire, prices fell back below the $100 mark within a day.

Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, pointed out, "We still see this as a single-variable market dominated by oil prices," adding, "Oil prices and interest rates are moving the stock market."

He added, "I believe the U.S. economy can handle oil prices at $90 or even $100 per barrel. Rather, I am more concerned about the impact of interest rates and persistent inflation on stock multiples."

Refining stocks are on a downward trend at this time. ExxonMobil is down 0.76%, and Chevron is down 0.49%. Energy stocks are mixed, with Occidental Petroleum up 0.31%, Diamondback Energy down 0.13%, and APA up 0.08%.

Mohammad Bagher Ghalibaf, Speaker of the Iranian Parliament, X (formerly Twitter)

Despite the lingering uncertainty surrounding the Iran war, the market is rising. The JP Morgan trading desk commented in a report, "Questions remain about who can limit military activity in Iran and what can satisfy Israel's interests, but the market appears to be hoping for a rebound from current levels."

On the morning of March 25, Mohammad Bagher Ghalibaf, Speaker of the Iranian Parliament, posted on his X account (formerly Twitter), "We are closely monitoring the deployment of U.S. forces," and warned, "Do not test our resolve to defend our territory."

This is interpreted as a warning against the U.S. deploying elite troops and other forces to the Middle East. In fact, Iranian forces fired a cruise missile toward the U.S. Navy aircraft carrier USS Abraham Lincoln.

Technology stocks have played a major role in driving the indexes higher today. Among the top companies by market capitalization, Nvidia is up 1.46%, Apple up 0.84%, Microsoft up 1.19%, Amazon up 1.97%, Alphabet up 1.44%, and Meta up 1.50%.

Financial stocks are also rising, as they are expected to benefit from a solid economic recovery. Morgan Stanley is up 0.86%, Blackstone up 1.70%, and Goldman Sachs up 1.29%.

Elias Haddad of Brown Brothers Harriman said, "Despite persistent strategic uncertainty, the market is moving with expectations for conflict resolution," adding, "Ultimately, Iran's response to the U.S. policy of de-escalation will determine whether the peak of fear has passed or if it is not yet over."

This content was produced with the assistance of AI translation services.