U.S. stocks in New York rose across the board as expectations grew for a cease-fire deal between the United States and Iran. International oil prices fell sharply for a second day.
On the 6th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended at 49,910.59, up 1.24% from the previous day. The Standard & Poor's (S&P) 500 rose 1.46% to 7,365.10, and the Nasdaq climbed 2.02% to 25,838.94 at the close. The S&P 500 and the Nasdaq set a new record high again that day. The Dow also briefly reclaimed the 50,000 mark during the session.
Improved investor sentiment was attributed to expectations for an agreement to end the war between the United States and Iran. According to U.S. media reports including CNN and Axios, the two countries are discussing the signing of a memorandum of understanding (MOU), which is expected to include a temporary halt to Iran's uranium enrichment, a relaxation of U.S. sanctions on Iran, and the lifting of the blockade of the Strait of Hormuz.
U.S. President Donald Trump also said in an interview with the U.S. public outlet PBS News that "I think there is a very strong possibility of reaching a deal with Iran," adding, "There is a possibility that a deal with Iran could be reached before the planned visit to China on the 14th–15th next week." Earlier, Trump said on the social media (SNS) Truth Social that significant progress had been made in negotiations with Iran and said the United States would temporarily suspend "Project Freedom," which helps free merchant ships stranded in the Strait of Hormuz.
International oil prices plunged. As easing Middle East risks and expectations for reopening the Strait of Hormuz overlapped, Brent fell 7.83% to $101.27 per barrel, and West Texas Intermediate (WTI) dropped 7.03% to $95.08 at the close.
Meanwhile, semiconductor company AMD surged more than 18% after posting results that beat market expectations and on hopes for expanded investment in artificial intelligence (AI) data centers.