U.S. Stocks Rally as Middle East Tensions Ease

U.S. stock markets ended higher on Wednesday as investor concerns about escalating tensions in the Middle East began to ease, helping major indexes recover from earlier volatility.

The Nasdaq Composite led the gains, rising 1.3%, while the S&P 500 climbed 0.8% and the Dow Jones Industrial Average advanced 0.5%, snapping a three-session losing streak.

Markets had been highly volatile after the United States and Israel launched strikes on Iran over the weekend, reportedly killing Iran’s Supreme Leader Ali Khamenei. Iran responded with attacks on Israeli and U.S. interests across the region.

Energy markets remained in focus, with West Texas Intermediate crude oil rising 0.8% to $75.15 per barrel amid concerns about potential disruptions in the Strait of Hormuz. Donald Trump said the U.S. Navy could escort tankers if needed to secure the vital shipping route.

Technology stocks drove much of the rally. Amazon.com Inc. gained nearly 4%, while Tesla Inc. rose 3.4% and NVIDIA Corp. added 1.6%.

After the close, Broadcom Inc. jumped more than 5% in extended trading after reporting stronger-than-expected quarterly results, driven by surging demand for AI-related chips and networking products.

Meanwhile, Bitcoin rebounded to around $73,500, lifting shares of crypto-related companies including Coinbase Global and Robinhood Markets.

Gold also edged higher, with futures trading near $5,155 per ounce, reflecting continued demand for safe-haven assets amid global uncertainty.