Wall Street opened mixed on Wednesday, with the Dow Jones Industrial Average dipping slightly, even as tensions in West Asia appeared to cool. Meanwhile, the S&P 500 and Nasdaq edged higher, inching closer to record highs as investors turned their attention to upcoming remarks from Federal Reserve Chair Jerome Powell.
In the early hours of trading, the Dow Jones Industrial Average (.DJI) slipped 30.2 points, or 0.07%, to 43,066.33. The S&P 500 (.SPX) rose 14.10 points, or 0.23%, to 6,101.85, while the Nasdaq Composite (.IXIC) gained 112.67 points, or 0.57%, to 20,037.86.
The market was buoyed by signs of de-escalation in West Asia, following a tense 12-day conflict between Israel and Iran. A ceasefire, which U.S. President Donald Trump claimed to have brokered, appears to be holding despite initial violations by both sides, including an Iranian missile strike and an Israeli offensive on Tehran. Trump publicly rebuked both nations for breaching the truce and instructed Israel to halt further military action, calling for restraint in a televised address.
The White House also pushed back against reports suggesting recent U.S. airstrikes had failed to neutralise Iran’s nuclear infrastructure, stating that while the attacks caused damage, the program may have only been set back by a few months. Both Iran and Israel have declared victory following what Trump dubbed “The 12-day war.”
Investors are now awaiting fresh signals from the Federal Reserve, with Chair Jerome Powell scheduled to testify before the Senate Banking Committee. His remarks come a day after addressing the House, where concerns were raised about the inflationary risks of the Trump administration’s tariff proposals. Powell is expected to shed light on the Fed’s outlook on inflation, interest rates, and the broader economy.