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A highly shorted stock. A shrinking pool of shares available to trade. A price that keeps climbing. They are the classic signs of a painful short squeeze, and they’ve rapidly come into view for Avis Budget Group Inc.

Avis shares soared more than 150% in the past three weeks after Pentwater Capital Management said it acquired a sizable stake in the rental-car company, which already has an outsized shareholder in SRS Investment Management.

Treasuries wavered between gains and losses, erasing most of an earlier rally, after an Iranian official said the ceasefire deal with the US had been violated.

US government debt had gained overnight, and traders slightly increased their wagers on a Federal Reserve interest-rate cut this year, after the announcement on Tuesday evening of a two-week truce between the US and Iran — after weeks of war — caused oil to plunge.

Copper rose to a three-week high after US President Donald Trump and Iran signalled readiness to hold talks to end the war in the Middle East during a proposed two-week pause in hostilities, even as Israeli strikes on Lebanon threatened to derail the fragile truce.

The industrial metal advanced 3.2% to settle at $12,709 a ton on the London Metal Exchange on Wednesday as global markets rediscovered an appetite for risk. Aluminum, the base metal most directly affected by supply concerns during the Middle East conflict, fell 0.6%.

Shipowners are placing “huge volume requests” for insurance cover as they look to transit the Strait of Hormuz following the US-Iran ceasefire deal, according to broker McGill and Partners.

With the increased demand from the market also comes “a pronounced rate correction,” said David Smith, head of marine at the London-based firm. He added that despite the ceasefire agreement, “heightened war conditions still remain and the Strait of Hormuz is still classified as a very high risk area.”

The first Treasury auctions of the month attracted improved investor demand, diluting concern that foreigners were avoiding US debt amid the war in the Middle East.

An auction of 10-year notes on Wednesday drew a yield only slightly higher than anticipated, a sign that demand nearly matched expectations. Together with the strong demand for a three-year note sale on Tuesday, it allayed concern that the war is pushing up borrowing costs by sidelining buyers.

A growing number of Federal Reserve officials worried the Iran war could further stoke inflation and wanted to make clear, following their March meeting, that the central bank may have to consider raising interest rates.

Minutes of the Federal Open Market Committee’s March 17-18 meeting, released Wednesday in Washington, showed policymakers wrestled with starkly differing scenarios for the US economy following the outbreak of the Iran war, and the policy reactions that might follow.

Most officials worried a protracted war could hurt the labour market and warrant lower interest rates. At the same time, many policymakers highlighted the risk to inflation that might ultimately warrant rate increases.

Super Micro Computer Inc. said a committee of its independent directors has hired a law firm and is investigating the circumstances surrounding an indictment last month of two employees and a contractor over the sale of servers to China.

“The independent directors have not set a definitive timetable for the investigation,” Super Micro said Tuesday in a statement. “The company will provide an update when the investigation is complete and does not intend to comment further until that time.”

Bitcoin touched a three-week high as global markets turned more optimistic after a ceasefire deal between the US and Iran. The largest cryptocurrency climbed as much as 5% to $72,841, its highest level since March 18, in New York trading. Smaller tokens also notched big gains, with Ether rising as much as 7.4% to $2,273.

A wave of optimism swept through global markets, lifting stocks and bonds while driving oil toward its biggest plunge in six years after the US and Iran reached a ceasefire deal.

The sharp rebound in risk appetite drove the S&P 500 up 2.5%. A tumble in oil to $95 eased concern about an energy crisis that could fuel inflation, reviving bets the Federal Reserve will cut interest rates in 2026. As the haven bid waned, the dollar erased its advance for the year.

Carnival shares jumped 10% after Iran partially reopened the Strait of Hormuz under a two-week ceasefire agreement with the US, easing concerns over travel disruption and fuel costs.

The cruise operator had come under pressure in recent weeks despite reporting strong first-quarter earnings, as investor worries over the Middle East conflict and rising oil prices weighed heavily on travel-related stocks.

Between the start of the conflict and the ceasefire announcement, Carnival’s stock had fallen nearly 20%.

Wednesday’s rally reflects renewed optimism that easing tensions in the region could stabilise fuel prices and improve the outlook for global travel demand. Despite the rebound, Carnival shares remain down 8% for the year so far.

The S&P Industrials sector jumped 3.5% in midday trading on Wednesday, putting it on track for its strongest single-day performance in over a year.

If gains hold, it would mark the sector’s best day since April 9, when industrial stocks soared nearly 9% after President Donald Trump softened his earlier tariff threats.

Leading the rally was United Airlines, which surged more than 9.5%. Other major gainers included HVAC company Comfort Systems and GE Aerospace, both of which climbed around 7%.

The sharp rise reflects renewed investor optimism toward economically sensitive sectors as easing geopolitical tensions and improving market sentiment boost appetite for cyclical stocks.

Financial markets are increasingly betting on a US Federal Reserve interest rate cut later this year following the ceasefire agreement between the United States and Iran, which has eased geopolitical tensions and improved investor sentiment.

According to CME Group’s FedWatch tool, the probability of a Fed rate cut by year-end rose sharply to around 43% on Wednesday. The tool tracks market expectations using 30-day federal funds futures contracts.

The shift suggests traders believe reduced geopolitical risk could lower inflationary pressures, particularly from energy markets, giving the Federal Reserve more room to ease monetary policy if economic conditions soften in the coming months.

Thirteen stocks in the S&P 500 hit fresh all-time highs on Wednesday, underscoring continued strength in US equities despite broader market volatility and macroeconomic uncertainty.

Among the companies reaching record levels were retail chain Ross Stores, engineering firm Comfort Systems, and energy equipment maker GE Vernova. Technology and semiconductor-linked names also featured prominently, including Dell Technologies, Jabil, Keysight Technologies, Monolithic Power Systems, and Teradyne.

Storage and data infrastructure players such as SanDisk, Seagate, Western Digital, and data centre operator Equinix also climbed to historic peaks, reflecting sustained investor optimism around digital infrastructure and AI-driven demand.

Industrial transportation company Westinghouse Air Brake Technologies joined the list as well.

Several of these stocks have surged on the back of growing investor enthusiasm for sectors tied to artificial intelligence, electrification, cloud computing, and infrastructure spending.

The broad spread of new highs across retail, industrial, and technology sectors suggests that investor confidence remains robust, even as markets navigate concerns around interest rates, geopolitics, and slowing global growth.

Anthropic PBC is limiting the release of its latest artificial intelligence model to a handful of major technology firms, warning that the system may be capable of powering cyberattacks if software makers don’t have a chance to test it against their own defenses first.

Anthropic said Tuesday that it’s forming an initiative called Project Glasswing with Amazon.com Inc., Apple Inc., Microsoft Corp., Cisco Systems Inc. and other organisations. The companies will get access to the new Anthropic model known as Mythos so they can test it against their own products and hunt for vulnerabilities. The idea is that the group will collectively share findings with peers.

Meta Platforms Inc. debuted its latest artificial intelligence model Wednesday — its first since Chief Executive Officer Mark Zuckerberg embarked on a multibillion-dollar overhaul of the company’s AI organisation to keep pace with rivals.

The highly anticipated model, known as Muse Spark, was created by Meta Superintelligence Labs, the new team of expensive AI researchers helmed by Chief AI Officer Alexandr Wang. Muse Spark will power the Meta AI chatbot, and in a pivot from the company’s prior open-source strategy, is a closed model, meaning its design and code won’t be made public.

Meta shares jumped 6% in New York following the announcement.

A key Saudi oil pipeline to the Red Sea suffered only limited damage from an earlier drone strike on one of its pumping stations, and crude flows continued, according to people familiar with the matter.

The pipeline wasn’t shut down, one of the people said, asking not to be named, discussing confidential information. Oil exports from Yanbu on the link’s western end had no interruption, according to a shipping agent and trader.

Saudi Aramco declined to comment on the strike or the extent of damage.Small-cap stocks staged a strong rally in midday trading on Wednesday, with the Russell 2000 climbing more than 3.2%, outperforming broader markets.The small-cap benchmark had started the year on a strong note but lost momentum following the onset of the US-Iran conflict, given its higher exposure to cyclical sectors. It was also the first among major US indices to enter correction territory, followed shortly by the Nasdaq Composite and the Dow Jones Industrial Average.Despite the recent volatility, the Russell 2000 has recovered part of its losses and is currently trading about 4% below its recent peak.Notably, the index remains up more than 5% for the year, even as the Dow, Nasdaq and S&P 500 continue to trade in negative territory on a year-to-date basis.The rebound highlights renewed risk appetite among investors, particularly in domestically focused and economically sensitive stocks.

Ed Yardeni believes the recent two-week ceasefire between the US and Iran reinforces his call that equities may have already bottomed out, though he cautions that volatility is far from over.

In a note on Wednesday, the Yardeni Research president said he has lowered the probability of a US recession to 20% from 35%, a move he had indicated last week. He added that incoming data suggests the economy was on a strong footing heading into the conflict.

While the ceasefire has provided relief to investors and supported market sentiment, Yardeni warned that risks remain elevated, particularly from geopolitical developments.

“A two-week pause is not a resolution,” he said, noting that financial markets are likely to remain highly sensitive to any negative headlines or a potential breakdown in talks.

The commentary underscores that while the worst of the recent selloff may be behind, markets could continue to see sharp swings as investors track developments around the US-Iran situation.

Retail investors are stepping in to buy the dip in Tesla, signalling renewed conviction in the EV maker despite its recent underperformance.

Shares of Tesla, which are down about 23% year-to-date, were trading marginally higher in early session on Wednesday, as some investors bet the stock may be nearing a bottom.

According to data from Vanda Research, Tesla has attracted about $256 million in retail inflows over the past five days, highlighting sustained dip-buying interest. The firm noted that the inflows reflect “strong” conviction among individual investors.

In contrast, retail demand for other megacap technology stocks within the “Magnificent Seven” basket — including Nvidia, Meta and Microsoft — has moderated.

“Retail remains engaged, but flows are less aggressive, more tactical, and increasingly selective, with a growing defensive bias,” Vanda said, indicating a shift in investor behaviour.

The trend suggests that while overall retail participation in equities remains intact, investors are becoming more discerning in their stock picks, with Tesla emerging as a preferred dip-buying candidate.The Nasdaq 100 is trading firmly higher on Wednesday, with gains broad-based across sectors and strong participation beneath the surface.Semiconductor stocks are leading the rally. The Philadelphia Semiconductor Index and the iShares Semiconductor ETF hit their first intraday record highs since February, signalling renewed strength in the chip space. Stocks such as Lam Research, Applied Materials, Western Digital, Micron, Intel, ASML and KLA are among the top gainers.Travel-related stocks are also seeing strong buying interest. Airbnb, Booking Holdings and Marriott are all trading higher, reflecting optimism around demand trends in the sector.Among the laggards, Diamondback Energy is under pressure, tracking the sharp decline in crude oil prices, which have fallen by around 15%.Megacap technology stocks are adding to the upside momentum. Alphabet, Amazon, Meta and Broadcom are up around 3%, while Nvidia, Apple, Microsoft and Tesla are also trading in positive territory, supporting the broader market rally.Cypherpunk Technologies (CYPH), a microcap biopharma company turned Zcash digital asset treasury, saw its shares surge as much as 20% in Wednesday’s session, driven by what appears to be a case of mistaken association.The spike follows a report by The New York Times that purportedly identifies the real identity of Bitcoin’s elusive creator, Satoshi Nakamoto. The report suggests that Adam Back, a British cryptographer, could be the person behind the pseudonym.A key detail in the report linked Back to the “cypherpunks” — a group of privacy-focused technologists and activists from the late 1980s who advocated the use of cryptography to enable anonymous transactions.While there is no direct connection between Cypherpunk Technologies and the cypherpunk movement — beyond a broad alignment on privacy and digital assets — the similarity in name appears to have sparked investor interest.The development was enough to lift the company’s stock and market capitalisation, underscoring how sentiment-driven trades continue to influence microcap names, especially in the cryptocurrency space.Cypherpunk Technologies had pivoted from biopharma to a digital asset-focused strategy, with exposure to privacy-centric cryptocurrencies such as Zcash.Notably, Adam Back had earlier spoken about Bitcoin and the broader crypto ecosystem in an interview with Yahoo Finance in December.Yahoo FinanceUS stock markets opened sharply higher after President Donald Trump signalled a temporary de-escalation in the US-Iran conflict, proposing a two-week ceasefire and easing fears of a prolonged disruption in global energy supplies.The Dow Jones Industrial Average opened over 1,380 points higher, or about 2.7%, while the S&P 500 and Nasdaq Composite gained around 2.5% and 2.1%, respectively, at the start of trading.The rally follows strong gains in pre-market trade after Iran agreed to reopen the Strait of Hormuz for two weeks, subject to a pause in hostilities, boosting investor sentiment.Oil prices fell sharply on easing supply concerns, with US crude (WTI) dropping over 17% to around $93 per barrel, while Brent crude slipped more than 16% to near $91.The positive momentum also builds on the previous session, where US indices ended largely flat with a positive bias amid early signs of a potential ceasefire. Global cues remained supportive, with Asian markets and Indian equities rallying sharply on hopes of de-escalation.

The US Dollar Index dropped more than 1% and is currently hovering around 98.6, putting it on track to erase its gains for 2026.

European stocks soared the most in a year as investors rushed to buy stocks in the wake of the US and Iran agreeing to a two-week ceasefire in exchange for Tehran reopening the Strait of Hormuz.

The Stoxx Europe 600 index was up 4.3% by 1:35 p.m. in London, the biggest intraday gain since April 2025. Stocks that had fallen the most during the war posted some of the biggest gains. EasyJet Plc and TUI AG jumped more than 10% as travel and tourism stocks led the advance in the index. Energy was the only sector in the red.

Oil and gas prices both plummeted after the US and Iran agreed to a two-week ceasefire aimed at halting the American-Israeli military campaign in exchange for a reopening of the Strait of Hormuz.

Brent fell as much as 17% before trading around $92 a barrel, while European natural gas futures posted their biggest decline in more than two years, shedding as much as 20%. Prices of refined fuels such as diesel and jet fuel — which had been the biggest threats to global inflation — also tumbled.

Wall Street surged in on Wednesday premarket trading as oil prices plunged below $100 after the U.S. and Iran agreed to a two-week ceasefire that includes the reopening of the Strait of Hormuz.

Futures for the S&P 500 jumped 2.7% before the opening bell and futures for the Dow Jones Industrial Average climbed 2.6%. Nasdaq futures soared 3.4%.

Benchmark U.S. crude sank $18.43 to $94.52 a barrel, a nearly 16% decline. Brent crude, the international standard, dropped $15.54 to $93.73 a barrel. Natural gas futures declined close to 5%.

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