The U.S. stock market closed higher on Wednesday, with the Nasdaq Composite leading the way, up 2.02% to 25,838.94, followed by the S&P 500 at 7,365.12 (+1.46%) and the Dow Jones Industrial Average at 49,910.59 (+1.24%). The broad-based rally was driven by rising hopes for a potential Iran peace deal, which lifted sentiment across the board, and upbeat earnings reports from technology companies. The AI sector, in particular, saw strong gains, propelling the Nasdaq toward another record high. Additionally, the market was buoyed by positive developments in the oil sector, as prices retreated on reports of progress in Iran-related negotiations. Notable movers included AMD, which jumped after reporting strong earnings, and SpaceX, with its impending IPO expected to generate significant interest.

The overall tone of the session was risk-on, with investors taking advantage of the improved outlook for geopolitical tensions and the strong performance of the technology sector. However, there were also signs of caution, with Apollo CEO Craig Rowan warning of a potential market correction and criticizing practices at rival insurers. In Asia, the Kospi index in South Korea hit a new high, driven by a 15% surge in heavyweight Samsung, reflecting the broader global risk-on sentiment. The mixed bag of headlines underscored the market's sensitivity to a range of factors, from macroeconomic trends to sector-specific developments.