Stocks Extend Rally as Middle East De-escalation Hopes Grow – US Market Wrap
US equities advanced for a second straight session as investors grew more optimistic that the conflict in the Middle East could be approaching an end, while Brent crude briefly dipped below $100 a barrel. Treasuries were mixed and the dollar weakened for a second day.
The S&P 500 rose 0.7%, building on the prior session’s gains as markets reacted to fresh comments from President Donald Trump on the direction of the war. Trump said Iran had requested a ceasefire and indicated the US would only consider that if the Strait of Hormuz is reopened. Iran’s foreign ministry rejected that claim, calling it false.
Optimism had already picked up after Trump said Tuesday that he expects US involvement in the conflict to end within two to three weeks, helping drive a strong rally in stocks. He is also expected to characterize the military campaign in Iran as successful in a prime-time address, while signaling that operations could conclude within that same timeframe.
The Nasdaq 100 climbed 1.2%. Brent crude fell 2.8% to around $101 a barrel. In fixed income, the two-year Treasury yield edged up to 3.81% after solid US labor-market and retail-sales data.
