US stocks closed higher on Wednesday after a news report indicating that Iran had signalled openness to diplomatic talks, combined with President Donald Trump’s pledge to stabilise oil markets, easing investor anxiety over the escalating Middle East conflict.
Investors rotated back into technology shares, lifting the Nasdaq 1.29% and keeping the index in positive territory since the U.S.-Israeli strike on Iran that ignited the conflict. The S&P 500 held close to its all-time closing high set in January, further supported by encouraging U.S. economic data.
On the economic front, payroll processor ADP reported that private-sector employment rose by more than expected in February, with 63,000 jobs added — a sharp rebound from the downwardly revised gain of 11,000 jobs in January.
In currency markets, the People’s Bank of China set its official yuan midpoint at 6.9007 against the dollar on Thursday — 117 pips, or 0.07%, stronger than the previous fixing and the firmest level in 34 months — a move markets interpreted as an effort to stabilise the currency. Separately, Beijing set its economic growth target for 2026 at 4.5%–5%, a modest step down from last year’s 5% pace, leaving room to address industrial overcapacity and rebalance the economy without committing to sweeping reform.
Gold rose on Thursday as widening Middle East tensions drove demand for safe-haven assets, with a softer dollar providing additional support to bullion. The metal traded around $ 5150, holding near record levels, as the U.S.-Iran standoff kept investor caution elevated.
The dollar, after its recent sharp rally, paused on Thursday — offering temporary relief to a battered euro, as investors held to tentative hopes that the conflict may prove shorter-lived than initially feared.
Crude oil surged 2.80% to $76.75, with the Strait of Hormuz remaining effectively closed and disrupting roughly 20% of global oil supply.
Broader Asian equities tracked U.S. gains as sentiment steadied following the initial shock of the Iran conflict. South Korea’s Kospi Index rebounded more than 10% after its worst-ever single-session crash, in which it shed over 12% the prior day.
Indian equity markets are poised to open on a positive note today on the back of conducive global cues. On any rebound, the 24,600–24,800 range stands as a formidable overhead barrier.