Wall St gains as markets welcome Iran deal

💡 US stocks rallied on Wednesday after the Iran nuclear deal was announced, with the S&P 500 index surging to a new high.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy. The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

Markets React to Iran Deal

Markets welcomed the Iran nuclear deal, with the S&P 500 index rising 2.5% to a new high. The Dow Jones Industrial Average also surged, led by gains in Boeing ($BA) and Caterpillar ($CAT). The Nasdaq Composite outperformed, with tech stocks such as Amazon ($AMZN) and Microsoft ($MSFT) driving the rally.

Oil Prices Rise

Oil prices jumped on the news, with West Texas Intermediate crude oil rising 4% to $115 per barrel. The Iran deal is expected to increase global oil supply, but the market is still concerned about the potential for further disruptions in the Middle East. Gold prices fell as investors turned to riskier assets.

What It Means for Investors