US open: Stocks higher as markets stabilise after volatile session

(Sharecast News) - Major indices were in the green early on Wednesday as stocks look set to try recover from a volatile previous session.

As of 1515 GMT, the Dow Jones Industrial Average was up 0.29% at 48,642.11, while the S&P 500 advanced 0.42% to 6,845.11 and the Nasdaq-100 came out of the gate 0.85% firmer at 22,707.95.

The Dow opened 140.84 points higher on Wednesday, taking a bite out of losses recorded in the previous session.

Stocks were higher early on Wednesday as geopolitical tensions in the Middle East eased slightly after Donald Trump said the US would provide risk insurance for all maritime trade through the Persian Gulf, a move aimed at getting tanker traffic moving through the Strait of Hormuz after the Iranian Revolutionary Guard threatened to block the route.

Trump's intervention comes as Israel launched another round of strikes on Tehran, with its defence minister vowing to "crush" Iran's capabilities, keeping markets on alert even as energy prices steadied. Brent crude pared earlier gains to trade up around 1.4% on Wednesday morning, while West Texas Intermediate rose roughly 0.9%.

Iran also dismissed a New York Times report on Wednesday claiming its intelligence operatives had signalled a willingness to open indirect talks with the US to end the conflict, calling the story baseless. Tasnim, the semiofficial news agency, cited a Ministry of Intelligence source describing the report as pure falsehood and psychological warfare. According to the New York Times, Iranian operatives had reached out to the CIA through another country's spy agency, a claim attributed to Middle Eastern and Western officials speaking anonymously.

Also in focus were comments from Treasury Secretary Scott Bessent, who said Donald Trump's plan to increase the global tariff to 15% from 10% will likely be implemented this week. Asked on CNBC's 'Squawk Box' when the increase would be implemented, Bessent said: "That's likely sometime this week." Bessent added that he believes the tariff will go back to the old rate "within five months".

Trump announced last month that he was planning to increase worldwide tariffs to a blanket 15%, after the Supreme Court struck down his reciprocal tariff regime.

Market participants were also zeroed in on February's ADP private payrolls report, which revealed US privatesector employment rose 63,000 in February - the strongest monthly gain since July 2025 - after January's increase was revised down to 11,000. Education and health services led the gains with 58,000 new roles, while construction added 19,000. Offsetting this, professional and business services shed 30,000 jobs, manufacturing lost 5,000, and trade, transportation and utilities slipped by 1,000. Economists were expecting to see 48,000 jobs added last month.

Elsewhere on the macro front, US mortgage demand picked up last week as borrowing costs hovered near a fouryear low, according to the Mortgage Bankers Association, with total applications rising 11% from the previous week. Applications to refinance a mortgage jumped 14.3% and were up 109% on the year, reflecting a sharp drop in rates as the average contract rate for 30year fixed mortgages with conforming balances held at 6.09%, the lowest since 2022. Applications to purchase a home rose 6.1% for the week and 10% for the year.

On another note, S&P Global's services and composite PMIs both cooled in February, with both surveys pointing to the slowest expansion in ten months. The US services PMI slipped to 51.7 from 52.7 in January, revised down from the flash reading of 52.3 and missing market expectations for a print of 53 - signalling a softer rise in new business, held back by a drop in export orders as overseas clients grappled with uncertainty around retaliatory trade policies.

The composite PMI, which combines the manufacturing and services PMIs, also eased, falling to 51.9 from 53.0 in January and coming in below the preliminary estimate of 52.3. Growth was constrained by weaker output across both sectors, alongside a moderation in new business midway through the first quarter.

Finally, the Institute for Supply Management's services sector registered its strongest expansion in more than three years in February, with activity accelerating sharply across key components. The ISM services PMI rose to 56.1 in February from 53.8 in January, comfortably ahead of expectations for 53.5 and marking the fastest pace of growth since August 2022. The pickup was driven by a jump in business activity, which rose to 59.9 from 57.4, its highest reading since September 2024. New orders posted their sharpest rise in 17 months at 58.6 versus 53.1, while employment growth strengthened to 51.8, the quickest in a year.

In the corporate space, Abercrombie & Fitch traded higher in early action after the retailer posted fourthquarter numbers that topped Wall Street expectations. Adjusted earnings came in at $3.68 per share, ahead of the $3.58 expected, while revenues rose 5% yearonyear to $1.7bn, slightly above the $1.67bn consensus.

Still to come, Broadcom will release its latest batch of quarterly earnings after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Microsoft Corp. (MSFT) $405.89 2.54%

Intel Corp. (INTC) $43.34 1.85%

Caterpillar Inc. (CAT) $731.79 1.72%

Dow Chemical Co. (DOW) $31.10 1.22%

Cisco Systems Inc. (CSCO) $79.22 1.05%

International Business Machines Corporation (CDI) (IBM) $247.66 0.97%

American Express Co. (AXP) $310.21 0.90%

Visa Inc. (V) $322.94 0.66%

3M Co. (MMM) $159.49 0.66%

Goldman Sachs Group Inc. (GS) $871.01 0.63%

Dow Jones - Fallers

Chevron Corp. (CVX) $184.27 -2.39%

Coca-Cola Co. (KO) $78.18 -1.41%

Merck & Co. Inc. (MRK) $117.94 -1.36%

Procter & Gamble Co. (PG) $157.65 -1.16%

Johnson & Johnson (JNJ) $243.94 -1.14%

Verizon Communications Inc. (VZ) $50.34 -1.02%

Nike Inc. (NKE) $58.84 -0.93%

Travelers Company Inc. (TRV) $308.46 -0.92%

JP Morgan Chase & Co. (JPM) $297.72 -0.90%

Amgen Inc. (AMGN) $371.94 -0.85%

S&P 500 - Risers

Ross Stores Inc. (ROST) $209.41 6.80%

Expedia Group Inc. (EXPE) $222.05 6.46%

American Airlines Group (AAL) $12.69 5.45%

Akamai Technologies Inc. (AKAM) $101.13 5.27%

Amazon.Com Inc. (AMZN) $214.63 5.20%

Western Digital Corp. (WDC) $261.58 5.00%

United Airlines Holdings Inc (UAL) $103.78 4.95%

Arista Networks Inc. (ANET) $130.77 4.78%

TripAdvisor Inc. (TRIP) $10.13 4.78%

Albemarle Corp. (ALB) $171.72 4.49%

S&P 500 - Fallers

Under Armour Inc. Class A (UAA) $6.84 -4.21%

Under Armour, Inc. (UA) $6.70 -3.80%

Diamondback Energy Inc. (FANG) $173.39 -3.43%

DENTSPLY Sirona Inc. (XRAY) $13.52 -3.11%

Coterra Energy Inc. (CTRA) $30.03 -3.08%

Halliburton Co. (HAL) $34.18 -2.94%

ConocoPhillips (COP) $115.15 -2.85%

Clorox Co. (CLX) $117.47 -2.84%

Devon Energy Corp. (DVN) $42.86 -2.78%

Apache Corp. (APA) $30.62 -2.69%

Nasdaq 100 - Risers

Workday, Inc. (WDAY) $145.38 7.47%

Ross Stores Inc. (ROST) $209.90 6.80%

Expedia Group Inc. (EXPE) $222.04 6.46%

Qvc Group Inc Series A (QVCGA) $3.30 6.41%

American Airlines Group (AAL) $12.65 5.36%

Amazon.Com Inc. (AMZN) $214.39 5.20%

Western Digital Corp. (WDC) $261.79 5.04%

Seagate Technology Plc (STX) $372.73 4.49%

Liberty Global plc Series C (LBTYK) $12.63 4.43%

Mercadolibre Inc. (MELI) $1,764.55 4.19%

Nasdaq 100 - Fallers

DENTSPLY Sirona Inc. (XRAY) $13.45 -3.11%

Monster Beverage Corp (MNST) $78.55 -2.63%

Mondelez International Inc. (MDLZ) $58.42 -1.67%

Vertex Pharmaceuticals Inc. (VRTX) $471.83 -1.50%

Kraft Heinz Co. (KHC) $23.83 -1.50%

Microchip Technology Inc. (MCHP) $71.12 -1.43%

Regeneron Pharmaceuticals Inc. (REGN) $768.52 -1.31%

Charter Communications Inc. (CHTR) $227.60 -1.20%

Costco Wholesale Corp. (COST) $999.82 -1.12%

Dollar Tree Inc (DLTR) $116.97 -0.90%