The S&P 500 Index closed up 0.54% on Wednesday, alongside a 0.66% rise in the Dow Jones Industrial Average and a 0.67% increase in the Nasdaq 100 Index, as U.S. crude oil prices dropped more than 2%. The uptick follows the Trump administration’s proposal of a 15-point peace plan aimed at ending the war with Iran, which includes terms for a rollback of Iran’s nuclear program and sanctions relief in exchange for cooperation.
However, Iran’s semi-official news agency announced its rejection of the U.S. ceasefire proposal, complicating prospects for peace. Meanwhile, geopolitical tensions continue as missile and drone attacks on Israel and Gulf states persist, raising concerns about potential escalation in the region. The International Energy Agency reported that disruptions in global oil supply could reach 8 million barrels per day this month, significantly affecting flows through the crucial Strait of Hormuz.
In financial markets, MBA mortgage applications fell 10.5% for the week ending March 20, with a significant increase in the average 30-year fixed mortgage rate to 6.43%. In addition, U.S. imports, excluding petroleum, increased by 1.2% month-over-month in February, the largest gain in four years.
