U.S. stocks close: Middle East ceasefire expectations boost the three major indices, commercial space and CPU concepts lead the gains

Why Do Diverging Conditions for US-Iran Ceasefire Still Push US Stocks Higher?

Cailian Press, March 26 (Editor: Shi Zhengcheng) Last night and this morning, despite huge differences in the conditions proposed by both sides for a ceasefire and negotiations between the US and Iran, the three major US stock indices still recorded their second joint rally of the week.

At the close, the S&P 500 rose 0.54% to 6,591.9; the Nasdaq Composite increased 0.77% to 21,929.83; and the Dow Jones Industrial Average gained 0.66% to 46,429.49.

(S&P 500 daily chart, Source: TradingView)

According to reports from CCTV News and other media, the US proposed a “15-point ceasefire agreement” requiring Iran to dismantle its main nuclear facilities and reduce missile capabilities to only self-defense levels. Iran’s conditions for a ceasefire include guarantees that the US and Israel will no longer wage war against Iran, along with demands for war reparations and recognition of its jurisdiction over the Strait of Hormuz.

Regarding the White House’s repeated emphasis on “negotiations with Iran,” Iranian Foreign Minister Amir Abdollahian responded that “over the past few days, the US has conveyed proposals to Iran through several friendly countries to end the war, which Iran’s leadership is studying,” but “communication through these mediators does not mean negotiations with the US.”

The Iranian Foreign Minister also emphasized that the Strait of Hormuz is “only closed to enemies,” and the Iranian military has already provided safe passage for ships of friendly nations.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf also issued a warning, stating that, based on intelligence, “Iran’s enemies, supported by certain regional countries, are preparing to seize an Iranian island.” Ghalibaf warned that if they dare to take any action, all critical infrastructure in the country will be ruthlessly targeted.

Meanwhile, amid reports that Iran is unwilling to negotiate with US Middle East envoy Robert Wittekov and Trump adviser and son-in-law Jared Kushner, US Vice President Kamala Harris has become a focal point during this round of conflict, which has mostly been silent.

Earlier today, reports indicated that the US is trying to arrange a meeting in Pakistan this weekend, with Harris heading to Pakistan. However, the timing, location, and participants of this meeting remain uncertain, and it’s unclear whether Iran will send representatives.

Elias Haddad, a strategist at BBH, said that although the geopolitical situation still involves strategic ambiguity, market positioning has begun to bet on a de-escalation of the conflict. Ultimately, how Iran responds to the US’s “downgrade conflict” policy shift will determine whether the market has passed its most panic-stricken phase or if greater risks still lie ahead.

As another participant in this conflict, Israel is reportedly “accelerating its strikes on Iran.” Several insiders said that Israeli Prime Minister Benjamin Netanyahu ordered on Tuesday to do everything possible within the next 48 hours to destroy as many Iranian military industrial facilities as possible. This hurried move reflects Israel’s concern that the war could be forced to stop soon.

Popular Stock Performance

By market cap, Nvidia rose 1.99%, Apple 0.39%, Google-A 0.17%, Microsoft fell 0.46%, Amazon up 2.16%, TSMC up 1.35%, Broadcom up 0.16%, Meta up 0.33%, Tesla up 0.76%, Berkshire Hathaway-A down 0.46%.

In new highs, AI server manufacturer Dell Technologies hit a new high since its re-listing in December 2018, and gas turbine giant GE Vernova reached a new high since its spin-off from GE in 2024.

The concept of commercial space surged collectively on rumors that “SpaceX is about to file its IPO.” Shares of SpaceX holder EchoStar Communications rose 7.43%, Rocket Lab and Planet Labs both gained over 10%. Intuitive Machines also jumped 14.68% after securing a $180 million NASA commercial lunar payload contract.

Due to reports of “tight CPU supply,” Intel and AMD both surged over 7% on Wednesday. Arm also soared 16.38% after announcing its own AGI CPU and providing an impressive revenue growth outlook.

Driven by a rebound in precious metals prices, Eagle Minerals rose 4.68%, Goldros Gold and Pan American Silver both gained over 3%.

Meanwhile, Micron Technology experienced a “5-day losing streak” on Wednesday, with SanDisk, Western Digital, and Seagate all weakening. On the news front, Google announced a new technology that can “significantly compress KV cache.” While the market is skeptical that a single algorithm can trigger a drastic change in storage demand, this news has undoubtedly affected trading sentiment.

Thanks to the rally in “takeout giants” and Pinduoduo’s earnings report, Chinese concept stocks outperformed the broader US market, with the Nasdaq Golden Dragon China Index rising 1.86% on Wednesday.

At the close, Alibaba gained 3.50%, Pinduoduo rose 4.61% after earnings, NetEase up 0.82%, JD.com up 8.3%, Baidu up 2.73%, Ctrip up 0.31%, Li Auto up 1.86%, Futu Holdings up 0.22%, Bilibili up 1.49%, JinkoSolar up 3.8%, Kingsoft Cloud up 6.71%.

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【First US Social Media Addiction Case Dismissed】

In an unprecedented ruling, a jury in Los Angeles federal court on Wednesday found social media giants Meta and Google’s YouTube responsible for a woman’s depression and anxiety caused by lifelong social media addiction, awarding $3 million in damages. Meta was ordered to pay $2.1 million, and Google at least $900,000.

【Merck to Acquire Terns for $6.7 Billion】

On Wednesday, Merck announced a $6.7 billion all-cash deal to acquire cancer biotech Terns Pharmaceuticals, aiming to gain its promising leukemia treatment drug.

Following this news, Terns’ stock rose 5.72%, and Merck gained 2.58%.

【Google’s Latest AI Audio Model Can Produce a 3-Minute Full Song】

Google released the new model Lyria 3 Pro for MusicLM on Wednesday, with the biggest improvement being its ability to produce a full three-minute song, compared to just 30 seconds with the Lyria 3 model launched last month.

【US Significantly Increases Key Missile System Orders】

Lockheed Martin and BAE Systems have reached agreements with the US Department of Defense to increase the production of the THAAD interceptor seeker fourfold. Additionally, Lockheed Martin will work with the Pentagon to boost the production of the PrSM missile, which will replace the Army Tactical Missile System (ATACMS).

(Concluded by Cailian Press, Shi Zhengcheng)