NEW YORK — Wall Street's main indexes all closed higher, lifted by falling U.S. Treasury yields, lower oil prices and a rebound in semiconductor stocks.
The Dow Jones Industrial Average rose 160.24 points, or 0.30%, to close at 53,577.40 on the 25th. The Standard & Poor's 500 gained 24.40 points, or 0.32%, to 7,677.28, while the Nasdaq Composite jumped 171.11 points, or 0.66%, to 26,151.30.
Among the largest technology stocks by market value, Nvidia rose 2.19%, Microsoft 0.90%, SpaceX 2.19%, Facebook parent Meta 1.97% and Tesla 0.37%. Apple fell 0.14%, Amazon 0.39%, Google parent Alphabet 0.32% and Broadcom 0.56%.
The market advanced on expectations that the previous day's U.S. economic sanctions could actually reduce conflict in the Middle East. Analysts attributed the gains to growing hopes that oil supply conditions would not worsen further, as the United States shifted toward sanctions rather than stepping up military pressure on Iran. U.S. Treasury Secretary Scott Bessent unveiled economic pressure measures against Iran the previous day that would also penalize third countries doing business with Tehran, but did not offer specifics on regulating China, a key source of funding.
The New York Times reported on the 25th, citing a U.S. State Department document, that the United States was preparing to redeploy diplomats to Middle East embassies that had been evacuated during the war with Iran. Those set to return include Israel, Lebanon, Saudi Arabia, Iraq, Kuwait and Oman. Al Arabiya, a leading Saudi outlet, reported that Pakistan's chief of army staff Asim Munir had visited Tehran the previous day carrying a proposal centered on halting the U.S. naval blockade against Iran and lifting sanctions. Russia's state-run RIA Novosti abruptly reported, citing Pakistani military sources and Iranian security officials, that the United States and Iran had agreed to a ceasefire that included free navigation through the Strait of Hormuz. The agency added that the ceasefire agreement would be formally announced within days, with further negotiations to follow.
Oil prices also fell sharply on the news. On London's ICE Futures exchange, Brent crude for October delivery closed at $88.58 a barrel, down $3.59, or 3.89%, from the previous session. On the New York Mercantile Exchange, U.S. West Texas Intermediate crude for October delivery fell $2.65, or 3.12%, to $82.36 a barrel.
Treasury yields fell for a second straight day on speculation that the U.S. Treasury could tap even its general account (TGA) to fund buybacks. The yield on the 30-year Treasury fell 0.07 percentage point to 5.161%, while the 10-year yield dropped 0.09 percentage point to 4.625%.
Bargain-hunting in semiconductor stocks ahead of Nvidia's second-quarter earnings for fiscal 2027 (May to July), due after the close on the 26th, also supported the gains. Many chip-related stocks rose, including SK hynix at 2.68% and Micron at 2.48%. Nvidia also halted its slide after eight trading days.
