Major Indexes Rise as Oil Retreats on US-Iran Peace Deal Optimism; Dow Hits New All-Time High

Major stock indexes advanced Wednesday as oil futures retreated on optimism about a U.S.-Iran peace deal, with the Dow Jones Industrial Average setting a new all-time high.

The blue-chip Dow, tech-heavy Nasdaq, and benchmark S&P 500 were a respective 0.4%, 0.1%, and 0.1% higher with about 90 minutes left in the session.

Yesterday, the Nasdaq and S&P 500 topped intraday and closing records set May 14. Chip stocks led gains, with Micron  soaring 19%. Shares of Micron, which topped $1 trillion in market capitalization yesterday, were up 2% in recent trading.

AI chip designer Marvell Technology, which is set to report quarterly results after the bell today, jumped 6% at the bell after surging more than 6% yesterday, but reversed course and declined 4%. The iShares Semiconductor ETF  slipped 1.5% after a 6% rise yesterday.

Oil prices sank Wednesday after media reports that Iran's state broadcaster said a draft of a peace deal with the U.S. includes a return to prewar Strait of Hormuz shipping levels within a month. Front-month contracts of Brent crude, the global benchmark, pulled back 5.1% to $94.50 a barrel in recent trading, while West Texas Intermediate futures, the U.S. crude oil benchmark, were down 5.3% to below $89.

The 10-year Treasury yield, which influences interest rates on mortgages and other consumer loans, slipped to 4.48% from Tuesday's close above 4.49%.

Gold futures declined 1.1% to $4,450 an ounce. Bitcoin was at $74,700, down from overnight highs above $76,000. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was 0.1% higher at 99.22.