U.S. stocks climbed on Wednesday, with traders welcoming American initiatives to pursue a diplomatic resolution to ongoing hostilities. The S&P 500 index closed 0.5% higher, as nine of its eleven sectors finished in positive territory. Materials and consumer discretionary stocks led the gains, while the energy sector declined. The Nasdaq 100 Index advanced 0.7%, and an index tracking major U.S. technology stocks also rose 0.7%. West Texas Intermediate crude fell approximately 1% to around $91 per barrel. The White House indicated that peace talks with Iran are ongoing, although Tehran has publicly rejected U.S. proposals and set its own conditions for ending the conflict. For now, "markets are inclined to see the positive side, which is pushing oil prices lower and supporting equities," said Michael O'Rourke, a strategist at Jonestrading. "While we don't anticipate the U.S. escalating the situation, we would also be surprised to see a near-term resolution." Signs of broader economic pressure stemming from elevated oil prices and war-related uncertainty are beginning to surface. Homebuilder KB Home noted that the Middle East conflict is starting to influence the behavior of potential homebuyers; its stock declined 1.6%. Bank of America highlighted that the potential for further interest rate hikes from the Federal Reserve remains a source of market unease. "If the conflict is resolved quickly, oil prices could retreat significantly, allowing the Fed to revert to a more dovish stance," stated Aditya Bhave, an economist at Bank of America. However, he cautioned that if the shock is "persistent but moderate, the Fed could turn hawkish, as it becomes more concerned about inflation." U.S.-listed shares of Arm Holdings Plc surged 16%, reaching their highest level since early November, after the company announced it would begin selling its own chips for the first time. Meta Platforms Inc. edged higher as the tech giant began offering stock options to executives for the first time since its IPO, in a move aimed at retaining talent. At the market close, the S&P 500 was up 0.5% at 6,591.9 points. The Dow Jones Industrial Average gained 0.7% to 46,429.49 points. The Nasdaq Composite Index rose 0.8% to 21,929.83 points. The Nasdaq 100 Index increased 0.7% to 24,162.98 points. The Russell 2000 Index advanced 1.2% to 2,536.378 points.