Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) in the green on Wednesday as optimism over a U.S.-Iran ceasefire pushed investor sentiment higher.
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News That Moved the Stock Market Today
- The U.S. and Iran have each outlined their conditions to end the war, although major disagreements remain on both sides.
- The U.S. called on Iran to cease uranium enrichment, end its nuclear weapons program, and reopen the Strait of Hormuz as a free maritime corridor. Iran’s proposal includes war reparations, recognition of its sovereignty over the Strait of Hormuz, and an end to “aggression and assassinations” by the U.S. and Israel.
- President Trump rescheduled his summit with Chinese President Xi Jinping to May 14-15. The meeting, originally scheduled for March 31 to April 2, was pushed back due to the war in Iran.
- Trump signed an executive order to create the President’s Council of Advisors on Science and Technology (PCAST). The council will advise the administration on developments in AI, quantum computing, and biotechnology and will include the CEOs of Nvidia (NVDA), Meta Platforms (META), and Google (GOOGL), among others.
- A jury ruled that Meta and Google are responsible for creating platforms that pose risks to teenagers.
- AMD (AMD) surged 7% following reports that the company would hike CPU prices by an average of 10%-15%.
- UBS lowered its Microsoft (MSFT) price target to $510 from $600, citing competition in the AI space and poor sentiment surrounding the company’s M365 and Copilot services.
- BlackRock (BLK) CEO Larry Fink warned of a “stark and steep recession” if oil pushes above $150.
Today’s Best-Performing Sector
The materials sector was the best-performing group on Wednesday as hopes for a U.S.-Iran ceasefire contributed to lower oil prices. Cheaper oil reduces production costs for metals, chemicals, and other materials companies and helps support stronger profit margins for the sector.
Several stocks led the materials sector’s gains, including:
- International Flavors & Fragrances (IFF)
- Amcor (AMCR)
- PPG Industries (PPG)
- Dow Inc. (DOW)
- Mosaic Company (MOS)
Today’s Worst-Performing Sector
Meanwhile, the energy sector faced the largest drawdown. Energy stocks often move inversely with materials stocks when oil rises or falls significantly. Higher oil prices boost energy profits but raise costs for materials companies, while lower oil prices reduce energy revenues and improve margins for materials firms.
Notable energy stocks trading lower include: