US Stocks Rise as Tech Gains Outweigh Oil Price Falls

The US stock market saw gains on Wednesday as technology stocks rose due to renewed enthusiasm around AI. The Dow Jones index increased by 0.9%, while the S&P 500 and Nasdaq both gained 0.5%. According to Axel Rudolph, senior technical analyst at IG, the US stocks edged higher due to a pause in surging Treasury yields easing pressure on corporate borrowing conditions, as well as falling oil prices providing further support.

Brent crude futures dropped by 2% to $104.45 per barrel on hopes of diplomatic progress between Washington and Tehran. Iran's foreign minister Abbas Araghchi stated that Tehran was prepared to restore passage through the waterway and restart nuclear talks with the US within seven days if Washington accepted its conditions.

In the tech sector, Microsoft rose after unveiling an updated Copilot app with new capabilities. Others in the sector, including Qualcomm and Dell Technologies, also gained. Akamai Technologies saw a rise after agreeing to an $11.6bn cloud-services deal with Anthropic.