Stocks made a U-turn Wednesday on hopes of U.S.-Iran diplomacy, reversing earlier losses as investors weighed the prospect of reduced geopolitical tensions in the Middle East. The rally came amid shifting sentiment around potential diplomatic engagement between Washington and Tehran.
Oil prices slipped on the same diplomatic hopes, reflecting expectations that any easing of tensions could loosen supply constraints in global crude markets. The move added to a volatile session as traders parsed headlines alongside corporate earnings signals.
General Motors’ shares fell after the automaker warned of a rocky 2027, citing uncertainty around tariffs, electric-vehicle demand, and costs. The warning weighed on the sector even as broader equities found footing on the diplomatic news.
Market participants remained cautious, balancing geopolitical optimism against mixed corporate outlooks and lingering questions about the durability of any U.S.-Iran rapprochement.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing