The New York stock market opened higher as expectations grew for U.S.-Iran cease-fire talks. The view that tensions in the Middle East could ease lifted investor sentiment.
At 9:34 a.m. on the 22nd (local time) on the New York Stock Exchange, the Dow Jones Industrial Average rose 342.61 points, or 0.68%, from the previous session to 50,628.27.
The Standard & Poor's (S&P) 500 rose 43.33 points, or 0.58%, to 7,489.05. The Nasdaq composite climbed 151.95 points, or 0.58%, to 26,445.05.
Risk appetite revived as reports suggested U.S.-Iran cease-fire talks could make progress.
Saudi outlet Al Arabiya, citing sources, reported that the final draft related to a U.S.-Iran cease-fire being prepared through Pakistan's mediation is set to be announced within hours.
Iran's state news agency IRNA said Pakistan Army Chief Asim Munir is headed to Iran. Munir has been known as a key figure mediating U.S.-Iran cease-fire talks. His trip to Iran was interpreted as a sign that a deal between the two sides is imminent.
Reuters also reported, citing sources, that Qatar, in coordination with the United States, sent a negotiating team to Tehran, Iran. Qatar was said to be working to secure a cease-fire agreement.
In the afternoon, Kevin Warsh is scheduled to take the oath of office as the next Federal Reserve (Fed) chair. The U.S. stock market will be closed on the 25th for Memorial Day.
Peter Cardillo, chief market economist at Spartan Capital securities, said, "The war can only end if key differences between the United States and Iran are still resolved, but the continuation of cease-fire talks is a positive factor for investors."
By sector, technology and utilities were strong. Consumer staples and telecommunications were weak.
Estée Lauder jumped 10.89%. The company said it ended potential talks with Spanish fragrance company Puig.
Merck rose 4.72% on news that a lung cancer therapy it is co-developing with China-based Kelun-Biotech reduced the risk of disease progression by about 65% in a phase 3 trial.
IMAX gained 12.75% after reports said the company is reviewing a possible sale and is in early talks with potential buyers.
European stocks also advanced. The Euro Stoxx 50 rose 1.16% from the previous session to 6,029.36. France's CAC 40 and Germany's DAX rose 0.82% and 1.28%, respectively. Britain's FTSE 100 added 0.33%.
International oil prices fell. At the same time, front-month West Texas Intermediate (WTI) for July 2026 delivery slipped 0.10% from the previous session to $96.25 a barrel.