Global shares hovered near record highs on Wednesday as Middle East tensions eased, with markets focused on U.S. inflation and prospects of an interest rate cut. Crude prices rose after snapping three straight sessions of losses.
The benchmark S&P 500 index finished unchanged and near a record high reached on February 19. Gains in technology and communication services shares were offset by losses in real estate, consumer staples and utilities stocks. The Dow lost ground but the Nasdaq gained.
The Dow Jones Industrial Average (.DJI), fell 0.25% to 42,982.43, the S&P 500 (.SPX), was flat at 6,092.16 and the Nasdaq Composite (.IXIC), rose 0.31% to 19,973.55.
European shares (.STOXX), dropped 0.74%.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), finished up 0.96% overnight. MSCI's gauge of stocks across the globe (.MIWD00000PUS), eased 0.02% to 902.84, after hitting a record high earlier in the session.
A ceasefire between Israel and Iran appeared to be holding, reducing the risks of disruptions to the global oil trade. At a NATO summit on Wednesday, President Donald Trump hailed the swift end to the 12-day conflict, saying that talks next week would seek a commitment from Iran to end its nuclear ambitions.
Federal Reserve Chair Jerome Powell resumed two days of congressional testimony on Wednesday, appearing before the Senate Banking Committee following scrutiny before a House panel on Tuesday.
"It looks like we've got a bit of a tug of war as to everything from Middle East tensions to how that's going to impact inflation, and then you've got oil prices firming up a little bit," said Sandy Villere, portfolio manager at Villere & Co in New Orleans.
"It would be interesting if oil gets weaker and inflation stays at bay and then you wrap all that into what Powell has been saying. It feels like the market is being pretty resilient."
CRUDE FUTURES UP
Brent crude futures settled up 0.8% to $67.68 a barrel, while U.S. West Texas Intermediate crude (WTI) settled up 0.9% to $64.92, both contracts paring some of the 13% losses made earlier in the week. Prices had rallied to five-month highs after the U.S. attacked Iran's nuclear facilities over the weekend.
Powell told the Senate panel that the Trump administration's tariff plans may well just cause a one-time jump in prices, but the risk of more persistent inflation is large enough for the central bank to be careful in considering further rate cuts.
The yield on benchmark U.S. 10-year notes fell 1 basis point to 4.283%, reversing earlier gains.
The U.S. dollar dropped to its lowest since 2021 against the euro but gained against the safe-haven Japanese yen.
The dollar strengthened 0.19% to 145.19 against the Japanese yen and was down 0.05% to 0.80480 against the Swiss franc , erasing earlier gains. The euro rose 0.43% at $1.1658, after hitting its highest since October 2021.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.27% to 97.69.
Gold prices were mixed. Spot gold rose 0.31% to $3,334.10 an ounce. U.S. gold futures settled 0.3% lower at $3,343.1.