US open: Stocks trade higher amid chip momentum, easing Iran tensions

(Sharecast News) - Major indices were in the green early on Wednesday as a tech‑led rally continued and falling oil prices lifted sentiment amid hopes for progress in talks with Iran.

As of 1515 BST, the Dow Jones Industrial Average was up 0.41% at 50,666.49, while the S&P 500 advanced 0.07% to 7,524.27 and the Nasdaq Composite came out of the gate 0.10% firmer at 26,683.74.

The Dow opened 204.81 points higher on Wednesday, reversing losses recorded in the previous session.

Oil prices were firmly in focus early on Wednesday, with West Texas Intermediate down 5.36% at $88.86 a barrel after Iran said it had received a draft outline for an initial, unofficial memorandum of understanding with the US, despite accusing Washington a day earlier of what it called a "gross violation" of the ceasefire agreement.

According to Iranian state TV, the framework would see Tehran restore commercial shipping in the Strait of Hormuz to pre‑war levels within a month. In return, the US would withdraw military forces from the area and lift its naval blockade. Iran's Revolutionary Guards said on Wednesday that a return to full‑scale conflict with the US was unlikely, though they warned the country remained prepared for any attack.

"The possibility of war is low because of the enemy's weakness, the armed forces are lying in wait with full magazines," said Mohammad Akbarzadeh, deputy political chief of the Islamic Revolutionary Guard Corps Navy.

Micron Technology continued to draw an amount of investor, jumping 6.69% in early action, extending a remarkable run that saw the memory‑chip maker surge 19% on Tuesday and break through the $1trn valuation mark for the first time. Micron, whose shares have more than tripled this year, was boosted further after UBS suggested the stock could more than double again as long‑term supply agreements tied to AI adoption begin to take hold.

Elsewhere in the corporate space, Abercrombie & Fitch climbed in early trade on despite weaker first‑quarter profits and disappointing like‑for‑like sales, with the retailer still managing to deliver a 14th consecutive quarter of revenue growth in what it described as a tougher consumer backdrop, while Dick's Sporting Goods cut its full‑year profit guidance as margin headwinds linked to its Foot Locker acquisition weighed on earnings, even as demand for sneakers and apparel supported quarterly sales.

Still to come, HP, Marvell Technology, U-Haul and Salesforce will report earnings after the close.

On the macro front, US mortgage applications fell by 8.5% in the week ended 22 May, according to the Mortgage Brokers Association, with climbing interest rates weighing on demand. Applications to refinance a mortgage, which are more sensitive to week-to-week interest rate changes, slumped 18% week-on-week, while applications to purchase a home dropped just 0.4%. Last week's moves came as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances hit 6.65%, up from 6.56%. The 30-year fixed rate has risen by 30 basis points over the last five weeks to hit its highest level since August 2025.

On another note, the Richmond Federal Reserve's manufacturing index increased to 13 points in May, up from a reading of 3 in April, as all three of its component indices rose. Shipments jumped to 16 from −2, while new orders rose to 17 from 8, and employment improved to 3 from 0. The future indices for shipments and new orders increased further into positive territory, while thte expectations index for employment rose to 23 from 7. The local business conditions index, on the other hand, decreased to 5 in May from 10 in April. However, the future local business conditions index rose to 17 from 3.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Procter & Gamble Co. (PG) $147.64 3.47%

Home Depot Inc. (HD) $318.61 3.28%

Nike Inc. (NKE) $45.94 2.89%

Salesforce.Com Inc. (CRM) $181.28 2.52%

Merck & Co. Inc. (MRK) $121.96 1.95%

Coca-Cola Co. (KO) $81.79 1.62%

Unitedhealth Group Inc. (UNH) $383.08 1.45%

American Express Co. (AXP) $313.31 1.45%

3M Co. (MMM) $155.96 1.44%

International Business Machines Corporation (CDI) (IBM) $252.83 1.44%

Dow Jones - Fallers

JP Morgan Chase & Co. (JPM) $298.70 -3.31%

Dow Chemical Co. (DOW) $34.29 -2.47%

Intel Corp. (INTC) $119.42 -2.13%

Goldman Sachs Group Inc. (GS) $983.77 -1.66%

Caterpillar Inc. (CAT) $900.43 -1.53%

Chevron Corp. (CVX) $181.87 -1.52%

Cisco Systems Inc. (CSCO) $119.39 -0.60%

Microsoft Corp. (MSFT) $411.77 -0.57%

S&P 500 - Risers

Bath & Body Works, Inc. (BBWI) $19.97 13.59%

MGM Resorts International (MGM) $41.18 7.88%

Micron Technology Inc. (MU) $929.57 7.15%

Norwegian Cruise Line Holdings Ltd (NCLH) $18.18 6.55%

United Airlines Holdings Inc (UAL) $112.74 6.41%

Coty Inc. Class A (COTY) $2.13 5.17%

Expedia Group Inc. (EXPE) $226.21 5.03%

Whirlpool Corp. (WHR) $44.53 4.91%

Harley-Davidson Inc. (HOG) $24.08 4.83%

Alaska Air Group Inc. (ALK) $45.83 4.80%

S&P 500 - Fallers

Boston Scientific Corp. (BSX) $51.21 -10.58%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Apache Corp. (APA) $36.71 -5.08%

FMC Technologies Inc. (FTI) $68.43 -4.25%

Corning Inc. (GLW) $188.66 -4.03%

Ipg Photonics Corp. (IPGP) $115.61 -3.92%

Raymond James Fin Corp. (RJF) $145.15 -3.90%

QUALCOMM Inc. (QCOM) $233.95 -3.80%

Diamondback Energy Inc. (FANG) $193.74 -3.74%

Halliburton Co. (HAL) $39.58 -3.53%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $929.57 7.15%

Expedia Group Inc. (EXPE) $226.21 5.03%

Seagate Technology Plc (STX) $873.02 4.27%

American Airlines Group (AAL) $15.26 3.83%

Wynn Resorts Ltd. (WYNN) $100.93 3.60%

Mercadolibre Inc. (MELI) $1,676.79 3.56%

Marriott International - Class A (MAR) $383.14 3.55%

Western Digital Corp. (WDC) $535.05 3.22%

Henry Schein Inc. (HSIC) $76.22 3.12%

NetEase Inc. Ads (NTES) $126.19 3.08%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

QUALCOMM Inc. (QCOM) $233.95 -3.80%

Check Point Software Technologies Ltd. (CHKP) $127.79 -2.27%

Starbucks Corp. (SBUX) $101.19 -2.18%

Nvidia Corp. (NVDA) $211.97 -2.14%

Intel Corp. (INTC) $119.42 -2.13%

Take-Two Interactive Software Inc. (TTWO) $218.94 -2.06%

JD.com, Inc. (JD) $29.83 -2.02%

Texas Instruments Inc (TXN) $319.04 -1.77%

Asml Holdings N.V. (ASML) $1,614.12 -1.66%