American stock market gains $400 billion and Amazon hits all-time high

The US stock market opens the day with substantial gains. Nearly all major stocks are in the green, with total market value rising by about $400 billion. The trigger is a peace signal from President Donald Trump, who announces that peace talks with Iran will begin today. Although Iran appears to contradict this.

In brief:

• The US stock market gains $400 billion collectively at the open.
• Amazon reaches a new all-time high.
• Trump announces peace talks with Iran for today.

Broad rally across the entire market

The opening prices show a broad recovery. Tech giants such as Microsoft (+4.65%), Google (+4.21%) and Amazon (+5.51%) lead the way. Amazon reaches a new all-time high in the process. Meta (+2.89%) and Tesla (+6.26%) also benefit from the positive sentiment.

Financial stocks are also joining the rally. JPMorgan rises 2.48%, Visa 2.32% and Berkshire Hathaway 2.53%. In the chip sector, Nvidia gains 7.34%, while Broadcom rises 5.78%. The green picture is broad: hardly any stock is in the red.

Iran talks as catalyst

The upturn is closely linked to diplomatic developments around Iran. Trump indicates that peace talks with the country begin today. That makes investors optimistic, because geopolitical tensions in the Middle East have weighed on markets in recent times. Earlier, the closure of the Strait of Hormuz by Iran had already caused considerable turmoil in the oil market.

De-escalation between the US and Iran could stabilise the oil price and broader financial markets. Investors are therefore responding positively to the news. Whether the talks will actually take place remains unclear, as the BBC reports that Iran denies the talks.