Global stock markets rose Wednesday as traders assessed company earnings and economic data, while oil prices surged more than four percent on a toughening US posture towards Iran.
All three major US indices advanced, with the broad-based S&P 500 winning 0.6 percent.
"You're getting a little bit of a bounce in some of the technology stocks that have been beaten up recently on fears of disruption over AI," said Tom Cahill of Ventura Wealth Management. "Bargain hunting in the software space that helped to push up the technology stocks."
But the indices retreated a bit from session highs after the release of Federal Reserve minutes which Cahill characterized as "a little more hawkish than some people were expecting."
Several Fed officials supported leaving the door open to interest rate hikes, citing concerns that inflation could remain stubbornly high and lifting the dollar.
Meanwhile, White House spokeswoman Karoline Leavitt warned that Iran would be "wise" to do a deal with the United States as President Donald Trump once again hinted at military action.
On Wednesday, Trump again suggested the United States might strike Iran in a post on his Truth Social site, with a US military buildup underway in the Middle East.
UN nuclear watchdog chief Rafael Grossi said there was a "step forward" in talks between Iran and the United States in Geneva but warned "we don't have much time."
The two sides took part in Omani-mediated talks in the Swiss city this week.
Chris Beauchamp, chief market analyst at investing and trading platform IG, said reports on possible military action in Iran "naturally raise the risk of some kind of closure of the Hormuz straits, and while an oil rally has been an off again/on again move for some weeks, sustained action in the region is likely to precipitate a significant move higher in prices."
Despite the geopolitical and technological uncertainty, European shares enjoyed a strong session.
London's FTSE 100 shares index led continental gains at the close with a rise of 1.2 percent after data showed UK inflation eased in January, paving the way for the Bank of England to cut its benchmark interest rate next month, weighing on the pound.
Paris's CAC 40 set a new record high for its part, moving just past its previous mark of 8,437.35 set on February 12 before settling back a bit for a day gain of 0.8 percent while Frankfurt closed up 0.9 percent.
Tokyo's stock market closed up one percent after Washington announced a first tranche of investments by Japan following a pledge totalling $550 billion in a trade deal with US President Donald Trump.
The commitments of $36 billion for three infrastructure projects came as Japan faces pressure to deliver on its pledges made in 2025 in return for lower US trade tariffs.
Elsewhere in Asia, the Lunar New Year holiday meant trading floors were shut in Hong Kong, Shanghai, Seoul and Taipei.
The euro dipped against the dollar on a report from the Financial Times that Christine Lagarde would step down before her term as European Central Bank president ends in October 2027.
An ECB spokesperson said Wednesday that Lagarde had taken no decision on leaving before her term expires.
- Key figures at around 2130 GMT -
New York - Dow: UP 0.3 percent at 49,662.66 (close)
New York - S&P 500: UP 0.6 percent at 6,881.31 (close)
New York - Nasdaq: UP 0.8 percent at 22,753.63 (close)
London - FTSE 100: UP 1.2 percent at 10,686.18 (close)
Paris - CAC 40: UP 0.8 percent at 8,429.03 (close)
Frankfurt - DAX: UP 1.1 percent at 25,278.21 (close)
Tokyo - Nikkei 225: UP 1.0 percent at 57,143.84 (close)
Hong Kong - Hang Seng Index: closed for holiday
Shanghai - Composite: closed for holiday
Dollar/yen: UP at 154.80 yen from 153.47 yen on Tuesday
Euro/dollar: DOWN at $1.1784 from $1.1855
Pound/dollar: DOWN at $1.3500 from $1.3629
Euro/pound: UP at 87.29 pence from 86.95 pence
Brent North Sea Crude: UP 4.4 percent at $70.35 per barrel
West Texas Intermediate: UP 4.6 percent at $65.19 per barrel
bur-jmb/jgc
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