04:43 PM EDT, 03/25/2026 (MT Newswires) -- US equities rose Wednesday, while oil prices dropped as hopes for an easing in the Middle East conflict re-emerged.

The Nasdaq Composite closed 0.8% higher at 21,929.8, while the Dow Jones Industrial Average climbed 0.7% to 46,429.5. The S&P 500 advanced 0.5% to 6,591.9. Barring energy and real estate, all sectors were in the green, led by materials.

West Texas Intermediate crude oil was down 1.2% at $91.21 per barrel in Wednesday late-afternoon trade, while Brent fell 1.3% to $103.14.

"Reports that the Trump administration has presented Iran with a 15-point proposal have supported a relief move across global markets," Charu Chanana, chief investment strategist at Saxo Bank, said in a report. "Oil has retraced from recent highs, equity futures have firmed, and some of the more acute stagflation trades have begun to unwind."

An Iranian official presented five conditions for ending the conflict, CNN reported Wednesday, citing state media outlet Press TV. The move comes ahead of a possible meeting of top officials in Pakistan this weekend to discuss an off-ramp, CNN reported, citing two Trump administration officials.

But uncertainty over a potential ceasefire remains high.

"Despite the initial (oil) market relief, uncertainty remains high," ING Bank said in a report. "Tehran fired a fresh wave of missiles at Israel and signaled little willingness to compromise, while Iran also reiterated that foreign ships can transit the Strait of Hormuz only if they comply with Tehran's regulations and are not supporting acts of aggression."

US Treasury yields were lower, with the 10-year yield last down 4.2 basis points at 4.33% and the two-year yield falling 4.3 basis points to 3.89%.

In economic news, mortgage applications in the US tumbled last week as rates continued to rise amid fears that the Middle East conflict will keep oil prices elevated, the Mortgage Bankers Association said Wednesday.

In company news, Merck ( MRK ) agreed to acquire oncology company Terns Pharmaceuticals ( TERN ) in a deal with an equity value of about $6.7 billion as the pharmaceutical giant aims to expand its hematology portfolio. Merck ( MRK ) shares rose 2.6%, the second best performer on the Dow, while Terns jumped 5.7%.

Chewy (CHWY) issued an upbeat full-year sales outlook, even as the online pet store company reported fiscal fourth-quarter results just below market estimates. Its shares surged 13%.

Paychex ( PAYX ) affirmed its fiscal 2026 guidance after delivering stronger-than-expected third-quarter results, as the company benefited from its artificial intelligence initiatives. Its shares climbed 3%

Gold was last up 2.8% at $4,525.60 per troy ounce, while silver advanced 3.4% to $71.96 per ounce.