S&P 500 Reverses 1.2% Drop in Ceasefire Expectations – US Market Wrap

Stocks recovered losses and oil fell as hopes for a diplomatic resolution in the Middle East improved ahead of Trump’s deadline for Iran to agree to a ceasefire.

Late in a volatile Wall Street session, sentiment improved after Pakistan urged the US to grant a two-week extension while asking Tehran to reopen the Strait of Hormuz. The S&P 500 wiped out a 1.2% decline, while US crude slipped to around $111 in late trading.

The US struck military targets across Iran’s Kharg Island as Trump pushed for an agreement before his Tuesday 8 p.m. deadline, warning that a “whole civilization will die tonight” if no deal is reached.

Efforts to keep ceasefire talks alive intensified after Iran paused its participation, though some communication continued through third-party channels.

Trump first issued deadlines on March 21 to pressure Iran to reopen the Strait of Hormuz, which handles about a fifth of global seaborne oil flows, and has repeatedly extended the timeline.

According to the New York Fed Survey, near-term inflation predictions increased by the most in a year in March as consumers expected higher petrol and food prices as the Middle East war began.

Fed’s Goolsbee expressed concern about the US economy, citing the rise in oil prices and low hiring by firms during an event in Detroit.