US stocks advanced on Wednesday, rebounding from a bruising start to the week for tech stocks, as oil prices plunged to their levels not seen since the beginning of the US-Iran war.
The tech-heavy Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) both rose around 0.6%, following steep losses for the indexes on Tuesday as AI-focused names took a hit. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, gained 1%.
Oil prices fell to their lowest levels since early March as oil tankers began navigating the Strait of Hormuz, though uncertainty persists over US-Iran talks and where key issues might ultimately land. Brent crude futures (BZ=F), the international benchmark, tumbling 4% to $73 a barrel, while West Texas Intermediate crude futures (CL=F) dropped to $70 a barrel.
While President Trump had pledged that the Strait of Hormuz would remain free of tolls, Iran and Oman have begun discussing a system to charge fees for ships transiting the key waterway for global trade.
Meanwhile, the rout in tech stocks took a breather after worries about lofty valuations, massive spending, and coming interest rate hikes prompted a wave of profit-taking in high-flying AI-linked stocks.
Micron’s earnings are due after the bell on Wednesday, and the results will be closely watched as Wall Street assesses just how much faith to put in AI. Its shares have been on a tear this year, rising more than 250%, but they sank 13% on Tuesday amid the tech rout.
