4:20pm: Crypto surge fuels risk-on mood
Stocks closed solidly higher Wednesday, shaking off recent jitters as investors latched onto hopes of deescalation with Iran — and piled back into risk assets.
The Nasdaq led the rebound, climbing 1.3%, or 291 points, to finish at 22,807. The S&P 500 added 0.8%, rising 53 points to 6,870, while the Dow Jones Industrial Average gained 238 points, or 0.5%, to close at 48,739. Small caps joined the rally too, with the Russell 2000 up 1.1% to 2,636.
A big part of the day’s energy came from crypto. Bitcoin surged 8% to top $73,000, extending its five-day gain to 11% as investors appeared to lean on digital assets as a hedge amid geopolitical uncertainty. The move sparked sharp gains in crypto-related stocks and added to the broader risk-on tone.
In commodities, oil prices steadied following news of diplomatic outreach involving Iran. Brent crude futures hovered near $81 a barrel, while West Texas Intermediate traded around $73. The relative calm in energy markets helped ease some inflation and supply concerns that had been bubbling up earlier in the week.
Investors are now looking ahead. Chip giant Broadcom reports earnings after the closing bell, which could set the tone for tech in the near term. And on Friday, all eyes will turn to the monthly U.S. jobs report — the next big test for markets trying to balance resilient growth with expectations for Federal Reserve policy.
For now, though, Wall Street seems content to take the rebound and run with it.
3:00pm: Market movers
- GitLab beat Q4 fiscal 2026 earnings expectations with $0.30 per share but shares fell 7% on cautious guidance for the year ahead.
- Wix’s Q4 earnings of $1.81 per share topped estimates, driving a 14% share jump despite a slight revenue miss.
- Abercrombie & Fitch (NYSE:ANF) reported record Q4 sales of $1.67 billion but shares fell 6.4% on a cautious 2026 outlook.
- Moderna Inc (NASDAQ:MRNA, XETRA:0QF) stock rose nearly 9% after agreeing to pay up to $2.25 billion to settle global patent lawsuits over LNP vaccine technology.
- Ross Stores reported Q4 sales of $6.6 billion, beating expectations and raising guidance for further 2026 growth.
- Bath & Body Works Inc (NYSE:BBWI) exceeded Q4 earnings and revenue expectations, with shares rising more than 6% in premarket trading.
1:40pm: Apple unveils new products
Apple shares were level after the tech giant unveiled a major lineup of new products, including MacBook models powered by its M5 Pro and M5 Max chips and the more affordable iPhone 17e.
According to Wedbush's Dan Ives, the new chips, featuring a Fusion Architecture and enhanced GPU and neural engine capabilities, deliver up to four times the AI performance of previous models. The MacBook Air, MacBook Pro, and MacBook Neo now offer higher memory bandwidth, faster AI workflows, and longer battery life, while nearly half of Mac buyers remain new to the platform, potentially boosting Mac sales.
The iPhone 17e, priced around $599, adds improved AI capabilities via the A19 chip, all-day battery life, and higher storage, targeting cost-conscious consumers. Dan Ives maintains an Outperform rating on Apple with a $350 price target, citing these launches as key catalysts for revenue growth.
12:35pm: Service sector conditions improving
The Institute for Supply Management’s Services Index climbed to its highest level in three and a half years as demand strengthened and overall conditions remained steady.
The report pointed to a rebuilding of inventories and a rise in order backlogs, signaling that activity is accelerating after an uncertainty-driven slowdown in the middle of last year. Some firms also reported adding staff in anticipation of stronger demand in the months ahead.
While elevated prices continue to weigh on many businesses, the survey indicated that cost pressures are not intensifying significantly.
“The February ISM Services Index leaped to its highest level in three and a half years amid improving demand and steady conditions, underscoring that service-sector conditions are improving as businesses see their way through steep levels of uncertainty,” Wells Fargo analysts said in a note.
11:40am: Oil, gas slip
“Oil prices retreated slightly from their 18-month highs amid rumours that Iran may be willing to have discussions with the US to end the conflict," noted Axel Rudolph, Chief Technical Analyst at investing and trading platform IG.
"TTF gas prices slumped by 9% following this week's 60% surge while gold and silver prices regained some of Tuesday's sharp losses as the US dollar weakened slightly."
10:50am: Services PMI beats forecasts
US services sector activity accelerated in February, with the Institute for Supply Management’s Services PMI rising to 56.1, its highest level since 2022 and well above expectations for a 53.5 reading.
The stronger-than-expected print points to solid expansion across the services economy, which accounts for the bulk of US economic activity.
At the same time, inflation pressures showed signs of easing. The ISM Services Prices Paid Index fell to an 11-month low of 63, indicating a moderation in input cost growth even as overall activity picked up.
10am: Stocks open higher, led by Nasdaq
US stocks indices generally opened higher, after the Dow Jones dallied with a short drop into the red.
After half an hour of trading the Nasdaq has climbed 0.8%, the S&P 500 was up 0.4% and the Dow 0.2%.
Coinbase was top risers on the S&P, up 11.4% as bitcoin rebounded.
Robinhood Markets was next, up 8%, with other included Applovin, Aristsa, Datadog, Western Digital and Seagate Technology.
Earlier today, US Treasury Secretary Scott Bessent reiterated his boss's promise that the US will try to help oil shipments in the Gulf region.
Defence Secretary Pete Hegseth also said "more forces are arriving" in the region, while Iran continued its retaliatory strikes on neighbouring countries for a fifth day.
US media reported that executives from US defence groups, including Lockheed Martin and RTX have been summoned to the White House on Friday to discuss ramping up production of missiles and other weaponry, despite President Trump's comments yesterday that the US had a "virtually unlimited supply".
8am: Dow Jones set for cautious start as futures waver
US futures were pointing to a flat to marginally lower open on Wall Street on Wednesday, with the mood seeming to be one of slightly weary stabilization more than any real conviction.
Dow Jones futures were off around 77 points, S&P futures down 5 points and the Nasdaq barely changed, before minutes later the Nasdaq was up 0.2% and the Dow was back to flat.
The picture has shifted considerably through the early hours and into the morning, with futures seeing deeper losses erased before pushing into the green during the European session, only to fade again.
There were some reasons for some cautious optimism, with gains on European markets, including a 1.75% rise for the German DAX and 0.8% rebound in London for the FTSE 100.
The tentative tone follows a session when the Nasdaq led the decline, sliding 1% to 22,516.69, the Dow ended down 0.8% at 48,501.27, and the S&P fell 0.9% to 6,816.63. with all three indexes clawed back significant ground from their intraday lows.
"Investors continue to grapple with the inflationary implications of surging oil prices," said market analyst David Morrison at Trade Nation, as the threat of drones and missiles from Iran has effectively blocked traffic through the Strait of Hormuz.
President Donald Trump said yesterday that the US would provide risk insurance and potentially naval escorts for tankers navigating the Persian Gulf to restore crude flows. But he does not seem to have done enough to calm nerves.
Today sees the release of the ISM services PMI and the ADP private payrolls report, ahead of Friday’s official non-farm payrolls.
On the corporate front, CrowdStrike shares are flat after its earnings overnight, while today sees numbers from Broadcom after the bell, Abercrombie & Fitch, Brown Forman and Okta.
Kenny Polcari at SlateStone Wealth noted the VIX rose another 9% on the day, after earlier spiking almost 25%, and said markets "won't fully calm down until the conflict in the Middle East ends."