The Dow rose 0.9%, the S&P 500 climbed 0.7%, and the Nasdaq 100 advanced 0.8% on Wednesday as emerging reports of a 15-point US peace proposal delivered to Tehran fueled hopes for a diplomatic end to the Middle East conflict. This rebound was supported by a drop in WTI crude oil prices and tumbling Treasury yields which eased inflation concerns and encouraged risk-taking across most equity sectors. Technology shares provided momentum with Nvidia rising 2% and semiconductor peers AMD and Intel jumping over 7% as investors favored growth. Financials and industrials also moved higher with JPMorgan adding 1.1% and GE Aerospace gaining 2.1% amid a softer inflation outlook. In contrast energy producers weighed on the market as lower oil prices caused Exxon Mobil and Chevron to slip. Micron Technology also bucked the trend falling 3.4% for its fifth consecutive losing session as investors reassessed capital expenditure following recent earnings.

US crude inventories rose by 6.926 million barrels to 456.2 million barrels in the week ended March 20, compared with market expectations for a 0.5 million-barrel rise and marking the fifth consecutive weekly increase. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 3.421 million barrels, the most since January 2023. Also, distillate stockpiles, which include diesel and heating oil, rose by 3.032 million barrels in the week to 119.9 million barrels, versus expectations for a 1.3 million-barrel drop. On the other hand, US gasoline stocks fell by 2.593 million barrels in the week to 241.4 million barrels, compared with analysts' expectations for a 2.1 million-barrel draw.

The United States current account deficit narrowed to a seasonally adjusted $190.7 billion in the fourth quarter of 2025 from $239.1 billion in the previous period, marking the lowest deficit since the first quarter of 2021. The goods deficit narrowed to $241.5 billion from $265.9 billion, as imports contracted more than exports, reflecting the impact of tariffs from the US presidential administration. Additionally, the primary income balance swung to a surplus of $23.9 billion from the deficit of $2.5 billion. In the meantime, the services surplus inched lower to $81.4 billion from $86.5 billion and the secondary income deficit inched down to $54.6 billion from $57.2 billion. The gap reflected a current account deficit of 2.4% of the US GDP in the fourth quarter, narrowing from 3.1% in the third quarter.

US import prices rose 1.3 percent in February 2026, the most since March 2022 and more than market expectations of 0.5%. Fuel and lubricant import prices climbed 3.8 percent after falling 1.2 percent in January, led by a 2.5 percent rise in petroleum products and a 24.7 percent jump in natural gas. Nonfuel imports increased 1.1 percent, up from 0.8 percent in January, supported by higher costs for capital goods, nonfuel industrial supplies and materials, consumer goods excluding autos, foods, feeds, beverages, and automotive vehicles, parts, and engines. On an annual basis, US import prices rose 1.3 percent, the largest year-on-year gain since February 2025.

WTI crude oil futures dropped more than 2% to $91 per barrel on Wednesday as US diplomatic efforts to end the war with Iran gained traction, overshadowing reports of additional troop deployments and the near-closure of the Strait of Hormuz. The US reportedly drafted a 15-point plan delivered to Iran via Pakistan to help resolve the conflict, while around 2,000 soldiers from the 82nd Airborne Division were deployed to the region to support security at the vital waterway. Iran signaled little willingness to compromise, firing missiles at Israel and ruling out ceasefire talks, while allowing some foreign ships to transit the strait under restrictions. The crisis has intensified global energy pressures, with Chevron warning of a potential California fuel crisis, hundreds of fuel shortages reported in Australia, the Philippines declaring a national energy emergency, and Asian nations reportedly hoarding jet fuel.

Germany’s Ifo Business Climate Index dropped to 86.4 in March 2026, the weakest reading since February 2025, as the escalating Middle East conflict dampens economic sentiment. The index compared with market forecasts of 86.1 and marked a sharp decline from February’s revised 88.4. The deterioration was driven by a steep drop in future expectations, which plunged to 86.0 from 90.2, as the war’s impact is exacerbating risks for Germany’s already shaky recovery. Meanwhile, the assessment of current conditions remained flat at 86.7. Sector-wise, sentiment weakened sharply among manufacturers (-14.3 vs -11.5), service providers (-5.1 vs 0.1), traders (-24.6 vs -21.8), and constructors (-15.8 vs -11.6). “The war in Iran has put any hope of a recovery on ice for the time being. Uncertainty among companies has increased noticeably", Ifo President Clemens Fuest said.