Wall Street saw broad gains on Thursday as optimism around potential US-Iran nuclear talks and strong tech earnings lifted major indices. The Dow Jones Industrial Average rose 0.8%, while the S&P 500 gained 1.2% and the Nasdaq Composite jumped 1.7% amid a tech sector rally.
Oil prices fell below $100 per barrel for the first time in three weeks, with Brent crude dropping 3.2% to $98.50. Analysts attributed the decline to renewed hopes for a nuclear deal with Iran that could bring more supply to global markets. “The market is pricing in a 50-50 chance of sanctions relief on Iranian oil exports,” said a commodities strategist at a major investment bank who requested anonymity due to company policy.
The tech-heavy Nasdaq outperformed other indices following better-than-expected earnings from several semiconductor companies. “We’re seeing a classic risk-on move where tech leads when geopolitical tensions ease,” noted Mark Johnson, chief market strategist at Baird Investments.
Market participants remain cautious, however, as negotiations with Iran have previously stalled. Energy analysts warn that any breakdown in talks could quickly reverse the oil price decline. The White House declined to comment on the status of negotiations when contacted by reporters.
Looking ahead, investors will scrutinize Friday’s jobs report for clues about the Federal Reserve’s next moves. “The market is walking a tightrope between growth concerns and inflation fears,” Johnson added. “Any signs of economic cooling could actually be positive for stocks if it means less aggressive rate hikes.”