Stocks Rally on Hopes of Iran-U.S. Strait of Hormuz Deal

Optimism that Washington and Tehran could reach a deal to reopen the Strait of Hormuz sent global stocks higher Wednesday. Treasury Secretary Scott Bessent told CNBC a deal to open the waterway could be reached by Wednesday, easing fears over oil supply through the chokepoint that carries about 20% of the world's crude.

The rally started on Wall Street, where tech stocks pushed the S&P 500 and Nasdaq to record closes. That strength carried into Asia, where technology shares tracked the U.S. advance. The broader risk-on mood also lifted auto stocks. General Motors and China's SAIC Motor said they extended their joint venture by 20 years, to 2047, focusing on domestic Buick and Cadillac sales and exports to non-U.S. markets.

The U.S. Central Command said the southern route through the waterway remains free and open for all commercial vessels. Tensions linger. Iran has claimed President Donald Trump could "ignite the spark" of World War 3 after Washington warned Tehran it was its last chance to make a deal.

In India, retail inflation accelerated to an 18-month high in June, crossing the Reserve Bank of India's 4% medium-term target for the first time in over a year. The print complicates the central bank's rate path as it balances growth support with price stability.

In Europe, Novo Nordisk's quarterly beat and raised guidance did little to change the debate over its obesity drug business. Analysts said the better-than-expected quarter benefited from temporary factors, and oral Wegovy slightly missed forecasts. A mixed clinical result for next-generation drug CagriSema reinforced investor questions about the company's longer-term pipeline.

General Motors, which extended its China venture, holds an AlphaScala Score of 58, a Moderate rating.