Wall Street mounted a relief rally Wednesday as traders weighed reports of potential U.S.-Iran diplomatic talks.

The dominant catalyst was a premarket headline from the New York Times suggesting the two sides could pursue diplomatic dialogue. Oil fell after two straight sessions of rally and technology advanced as ceasefire odds edged higher in prediction markets.

By midday trading in New York, the Nasdaq 100 led with a 1.5% gain to 25,100 and the S&P 500 rose 0.8% to 6,875. The Russell 2000 added 1.0% to 2,630.

The Dow Jones Industrial Average underperformed, slipping 0.1% to 48,860, weighed by consumer staples weakness. The CBOE Volatility Index plunged 11.6% to 20.84.

Technology led all S&P 500 sectors, with the Technology Select Sector SPDR Fund (NYSE:XLK) gaining 1.8%. Consumer discretionary added 1.7% and communications climbed 0.8%. Energy was the session’s clear laggard, with the Energy Select Sector SPDR Fund (NYSE:XLE) down 1.2% as crude prices retreated.

Bitcoin (CRYPTO: BTC) topped $71,000 for the first time in a month, rising 7% and lifting crypto names on the back of de-escalation ...