LIVE MARKETS-Wall Street gains on optimism about Iran conflict

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WALL STREET GAINS ON OPTIMISM ABOUT IRAN CONFLICT

Shares on Wall Street are trading higher early in Wednesday's session, bolstered by optimism about de-escalation or some sort of resolution of the Middle East conflict.

Pakistan has delivered a proposal from the United States to Iran, and either Pakistan or Turkey could be venues for discussions to de-escalate the war in the Gulf, a senior Iranian official told Reuters. Tehran has so far denied in public that it would negotiate with the Trump administration.

Media reports earlier said Washington had sent Iran a 15-point proposal. Israel's Channel 12 said the U.S. planned to discuss the plan during a proposed ceasefire.

Nine of the 11 S&P 500 sectors are up on the day.

U.S. crude futures CLc1 are down around 4% on the day.

"It's important for investors to not get overly bearish, especially during geopolitical events, which are volatile and can change course at any time," wrote Paul Stanley, chief investment officer, Granite Bay Wealth Management, in emailed comments.

"Any additional indication of a de-escalation of tensions may spark a risk-on move in stocks. Stocks have a tendency to recover faster than expected from geopolitical events, even if it doesn't feel like that in the moment and over the short term."

A recent spike in oil prices tied to the Iran conflict has revived inflation worries, muddying the interest rate outlook for central banks.

Markets now see no chance of Federal Reserve easing this year, versus expectations of two cuts before the conflict, CME Group’s FedWatch Tool shows.

Here's a morning snapshot of where financial assets are trading:

(Gertrude Chavez-Dreyfuss)

EARLIER ON LIVE MARKETS:

RETAIL INVESTORS STEP BACK AS MIDDLE EAST TENSIONS RATTLE MARKETS CLICK HERE

BULLS AWAIT BREADTH THRUST AS A NASDAQ INTERNAL STRENGTH GAUGE CONTINUES TO SLIDE CLICK HERE

OIL JUST RIGHT FOR FED HAWKISHNESS CLICK HERE

TRUMP PAIN INDEX HITS HIGH-ALERT LEVEL CLICK HERE

EUROPEAN SHARES SHOW CAUTIOUS OPTIMISM CLICK HERE

EUROPE BEFORE THE BELL: FUTURES HIGHER, BUT NO ONE KNOWS WHAT TO THINK CLICK HERE

MORNING BID EUROPE: DEAL, OR NO DEAL? CLICK HERE