Wall Street began April on a stronger footing, with major United States indices advancing on Wednesday (Thursday AEDT) as investors bet that the ongoing conflict between the United States and Iran could soon de-escalate, easing pressure on energy markets and risk sentiment.
The Dow Jones Industrial Average climbed 224.2 points or 0.5% to close at 46,565.7. The S&P 500 rose 46.8 points or 0.7% to finish at 6,575.3, while the Nasdaq Composite lifted 250.3 points or 1.2% to close at 21,841.0.
Investor optimism was driven largely by signs that the conflict in the Middle East may be nearing a turning point. U.S. President Donald Trump indicated that American forces could withdraw from Iran in the coming weeks, signalling a potential shift away from prolonged military engagement.
“The U.S. will be out of Iran pretty quickly,” Trump told Reuters, adding that Washington could still return for “spot hits” if required.
His remarks came ahead of a scheduled national address expected to provide further clarity on the situation.
Earlier in the day, Trump said via Truth Social that Iran’s president had requested a ceasefire. However, he stressed that any agreement would depend on the Strait of Hormuz being “open, free, and clear”, warning that “until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!”
Oil markets reacted swiftly to the prospect of de-escalation. West Texas Intermediate crude futures fell 1.2% to settle at US$100.12 per barrel, while Brent crude declined 2.7% to $101.16 per barrel.
The positive momentum followed a strong rally in the previous session, when markets surged on similar hopes that diplomatic progress could bring an end to hostilities.
Technology stocks were among the biggest beneficiaries of the improved sentiment. Alphabet rose 3.4%, while Meta Platforms and Amazon each gained more than 1%.
In the space sector, reports that SpaceX had confidentially filed for an initial public offering lifted related stocks. Intuitive Machines surged 9%, Planet Labs jumped 10%, and Rocket Lab added 2%.
Corporate developments also drove individual stock moves. Eli Lilly advanced 3.8% after the U.S. Food and Drug Administration approved its weight loss pill, to be marketed under the brand name Foundayo.
Meanwhile, Intel surged 8.8% after announcing plans to buy back Apollo’s stake in its Ireland manufacturing facility for $14.2 billion.
Nike was a notable laggard, tumbling 15.5% to its lowest level in a decade after warning of an unexpected decline in fourth-quarter sales.
On the economic front, data pointed to continued resilience in the U.S. economy. ADP’s national employment report showed steady growth in private payrolls during March, while retail sales recorded their strongest increase in seven months in February.
Manufacturing activity also expanded, according to the Institute for Supply Management.
Investors are now turning their attention to the upcoming nonfarm payrolls report, which is due on Friday but will be released while U.S. markets are closed for the Good Friday holiday.
Market participants are also awaiting Trump’s national address for additional guidance on the trajectory of the Iran conflict.
On the bond markets, 10-year and 2-year rates were up 0.1% and 0.4% to 4.321% and 3.805%, respectively.
