Global equity markets staged a massive recovery on Wednesday, fueled by news of a de-escalation in tensions between the United States and Iran. The agreement, which mandates a ceasefire and guarantees the reopening of the Strait of Hormuz for a two-week period, triggered broad-based buying across major exchanges.
In the United States, the Dow Jones Industrial Average led the gains with a jump of 1,325.46 points, or 2.85%. The S&P 500 rose 2.51% to finish at 6,782.96 points, while the Nasdaq 100 climbed 2.90% to close at 24,903.17.
European and Asian markets lead the charge
International bourses outperformed their American counterparts as investors rushed back into risk assets. European markets saw particularly strong gains, with the Euro Stoxx 50 surging 5.02% to nearly 6,000 points. Germany’s DAX index followed suit with a 5.06% increase, while France’s CAC 40 added 4.49% to close at 8,263.87.
Asian markets logged some of the day’s most aggressive growth. Japan’s Nikkei 225 jumped 5.39% to 56,308.42, and South Korea’s KOSPI index rallied 6.87%. Other hubs followed the trend, with India’s BSE Sensex 30 rising 3.95% and Hong Kong’s Hang Seng index climbing 3.09%.
These gains effectively returned global markets to the valuation levels seen in late February and early March, immediately preceding the onset of the latest conflict in the Middle East. The stability provided by the temporary truce appears to have quelled the volatility that characterized the previous month of trading.
Closer to home, the Santiago Stock Exchange mirrored the global sentiment. The S&P IPSA index opened Wednesday above the 10,800-point mark and maintained momentum throughout the session. By the closing bell, the Chilean index had gained 3.2%, finishing at 10,857.30 points, a significant recovery from its Tuesday close of 10,518.40.
