Dow Jones climbs 0.93% on Strait of Hormuz deal hopes

Wall Street finished higher on September 25 as investors monitored expectations of an agreement to reopen the Strait of Hormuz, alongside talks between leaders of China and the United States.

The Dow Jones rose 0.93% to 51,828.62 points. The S&P 500 gained 0.51% to 7,743.41 points, while the Nasdaq advanced 0.48% to 27,068.72 points.

Ulrike Hoffmann-Buchardi, chief investment officer at UBS, noted that while recent Federal Reserve remarks were hawkish, monetary tightening will likely be less aggressive than current market pricing suggests. The executive added that resilient growth and solid earnings should help markets withstand a moderate tightening cycle, while higher bond yields offer opportunities to generate portfolio income.

In Europe, Spain's IBEX 35 gained 0.65% and Italy's FTSE MIB rose 0.63%. In Mexico, the S&P/BMV IPC advanced 1.13% to 64,992.23 points, and the FTSE-BIVA rose 1.08% to 1,316.66 points. Meanwhile, West Texas Intermediate crude fell 1.91% to 92.80 dollars per barrel, and Brent declined 1.81% to 104.67 dollars per barrel, as negotiations pointed toward reopening the Strait of Hormuz and lifting the blockade on Iranian ports.