U.S. stocks closed broadly higher on Wednesday as investors embraced reports that the White House had delivered a comprehensive 15-point ceasefire proposal to Iran, raising hopes for a diplomatic resolution to the conflict that has rattled markets throughout March. Falling crude oil prices added fuel to the rally, easing the inflation concerns that weighed on equities a day earlier.
The Dow Jones Industrial Average rose 305.43 points, or 0.66%, to close at 46,429.49. The S&P 500 (SPI:SP500) gained 35.51 points, or 0.54%, to finish at 6,591.90, while the Nasdaq Composite advanced 167.70 points, or 0.77%, ending at 21,929.83. All three major averages built on the recovery that began earlier in the week after President Trump signaled productive talks with Tehran.
Crude oil prices pulled back sharply on the day, offering a reprieve from the inflationary pressures that had pushed stocks lower on Tuesday. Despite the optimism, Iran responded with a five-point counteroffer that would give Tehran control over the Strait of Hormuz, though markets largely shrugged off the rejection, focusing instead on the fact that diplomatic channels remain open.
Notable Movers
Arm Holdings (NASDAQ:ARM) was the standout of the session, surging roughly 16% after the chip designer unveiled plans to manufacture and sell its own AGI CPU, the company’s first in-house chip in its history. CEO Rene Haas said the new product could generate $15 billion in revenue by 2031, with Meta Platforms as the flagship launch customer. Raymond James upgraded the stock to outperform. The announcement lifted the broader semiconductor space, with AMD jumping over 7% and Intel rallying nearly 7%.
In M&A news, Merck (MRK) announced a definitive agreement to acquire clinical-stage biotech Terns Pharmaceuticals (TERN) for $6.7 billion in an all-cash deal at $53 per share. The acquisition targets Terns’ lead candidate TERN-701, a treatment for chronic myeloid leukemia, and marks Merck’s third multibillion-dollar deal in the past year as it prepares for Keytruda’s patent expiration in 2028. Merck rose about 2% on the news, while Terns jumped nearly 6%.
Earnings drove several big moves. Paysign (PAYS) skyrocketed 35% after fourth-quarter results handily beat revenue expectations and management issued a bullish 2026 outlook. Chewy (CHWY) surged over 13% on record free cash flow and growth in its active customer base. Braze (BRZE) popped roughly 18% after beating fourth-quarter revenue estimates. On the downside, KB Home (KBH) fell about 7% after reporting a 23% year-over-year revenue decline to $1.08 billion and earnings that missed analyst expectations.
Sarepta Therapeutics (SRPT) climbed approximately 20% after reporting positive Phase 1/2 clinical data from its siRNA programs targeting facioscapulohumeral muscular dystrophy and myotonic dystrophy, showing dose-dependent muscle exposure and proof-of-concept biomarker reduction with no dose-limiting toxicity.
Looking Ahead
The trajectory of the Iran conflict and its impact on oil prices remains the dominant driver for markets heading into the second half of the week. Any concrete progress on ceasefire negotiations could extend the current relief rally, while a breakdown in talks would likely push crude and Treasury yields back higher. Thursday brings weekly jobless claims data, which will be watched closely for signs of labor market softening amid the ongoing geopolitical uncertainty.