US stocks hit record at close; Dow Jones exits correction territory

US stocks closed higher on Wednesday, with the Dow Jones Industrial Average posting a record close for a second straight session and exiting correction territory, as optimism grew over a potential US-Iran deal to end a conflict that has lasted more than two months.

At the close, Dow rose 1.24%, or 612 points, to 49,910, after briefly crossing the 50,000 mark during the session. It exited the correction territory after 27 days.

The broader S&P 500 gained 1.46%, or 105 points, to 7,365, closing above the 7,300 level for the first time on record. The Nasdaq Composite climbed 2%, or 512 points, to 25,838. Both indexes notched record closes for a second consecutive session.

In Europe, the STOXX Europe 600 rose 2.22% to 623 points, extending its year-to-date gains to 5.24%, after advancing about 3.4% over the past five sessions.

The UK’s FTSE 100 gained 2.15% to 10,438, Germany’s DAX rose 2.12% to 24,918, and France’s CAC 40 climbed 2.94% to 8,299.

Markets are awaiting the reopening of Tokyo’s stock exchange after an extended holiday, while the yen continued to strengthen against the dollar, fuelling speculation of fresh government intervention in the foreign exchange market.

In energy markets, Brent crude futures for July delivery fell 7.83%, or $8.60, to settle at $101.27 a barrel, while US WTI crude for June delivery dropped 7%, or $7.19, to $95.08 a barrel.

Gold futures for June delivery rose 2.75%, or $125.80, to $4,694.30 per ounce, marking their highest close since April 24.

Market Drivers: Wall Street was supported by expectations that a peace deal between the United States and Iran could be reached within days, as suggested by President Donald Trump, alongside gains in chip stocks driven by stronger-than-expected earnings and outlooks.