Category: Market Summary

U.S. stock index futures pointed to a positive start for markets on Wednesday, indicating equities may continue to rise after the sharp gains recorded in the previous session.

Investor confidence has been supported by growing expectations that the United States could soon bring its conflict with Iran to an end, following new remarks from President Donald Trump.

Speaking with reporters at the White House on Tuesday, Trump said American forces could withdraw from Iran within “two or three weeks.”

Trump also argued that a negotiated settlement would not be necessary to conclude the war, describing a deal as “irrelevant” because “everything’s been bombed out.”

The White House later announced that Trump will address the nation at 9 p.m. ET on Wednesday to deliver an important update on the situation with Iran.

Oil prices continued to retreat after the president’s comments, with U.S. crude futures falling below the $100-per-barrel mark.

Markets surge on easing geopolitical concerns

Stocks built on early gains throughout Tuesday’s session, ending the day firmly higher across the board, with technology stocks leading the advance.

By the close, the major benchmarks were near their daily highs. The Nasdaq jumped 795.99 points, or 3.8%, to 21,590.62, while the S&P 500 climbed 184.80 points, or 2.9%, to 6,528.52. The Dow Jones Industrial Average rose 1,125.37 points, or 2.5%, to 46,341.51.

Even with Tuesday’s rally, the major indexes still recorded sizable losses for March overall. The Dow fell 5.4%, the S&P 500 declined 5.1%, and the Nasdaq dropped 4.8% during the month.

Reports of potential war wind-down lift sentiment

The strong move higher on Wall Street followed reports that the U.S. administration may be looking for a way to conclude its military involvement in the Middle East.

According to the Wall Street Journal, Trump told advisers he would consider ending the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed.

Officials cited in the report said Trump and his team believe that attempting to reopen the strait by force would likely extend the conflict beyond his preferred timeline of four to six weeks.

Those officials also indicated that the administration will continue applying diplomatic pressure on Tehran to restore commercial shipping through the strait. If that effort fails, Washington may push allied countries to lead efforts to reopen the waterway.

Stocks accelerated further in afternoon trading after Trump appeared to confirm parts of the Journal’s report in an interview with the New York Post, saying the United States would not remain in the region “too much longer.”

In the same interview, Trump suggested other nations should take responsibility for reopening the Strait of Hormuz, stating: “Let the countries that are using the strait, let them go and open it… because I would imagine whoever’s controlling the oil will be very happy to open the strait.”

Oil prices moved lower following those remarks, boosting optimism that an eventual end to the conflict could ease energy costs and help reduce inflation concerns.

Sector performance

Value hunting also played a role in Tuesday’s rally, with the Nasdaq and S&P 500 rebounding from their lowest closing levels in nearly eight months.

Gold-related equities surged alongside the rising price of the precious metal, driving the NYSE Arca Gold Bugs Index up 7.2%.

Semiconductor stocks also posted notable gains, with the Philadelphia Semiconductor Index jumping 6.2% after closing Monday at a three-month low.

Airline stocks advanced strongly as well, pushing the NYSE Arca Airline Index higher by 5.4%.

Other areas showing strength included computer hardware, biotechnology, and networking stocks, while energy companies declined as oil prices retreated during the session.

Oil prices and shares of major energy companies moved lower on Wednesday after Donald Trump suggested the conflict in Iran could conclude within “two to three weeks.”

Brent crude briefly dropped to $98.35 per barrel before trimming losses to trade slightly above $102, as investors weighed the possibility that the war — which has disrupted global energy flows in recent months — may soon wind down.

Oil majors fell alongside crude prices. ExxonMobil (NYSE:XOM) and Chevron were each down about 2% in premarket trading at 04:54 ET (08:58 GMT), while ConocoPhillips (NYSE:COP) declined 1.9%. European energy groups also weakened, with BP (LSE:BP.) and TotalEnergies (EU:TTE) each slipping roughly 2%, and Italy’s Eni (BIT:ENI) falling 2.7%.

Speaking on Tuesday, Trump said: “Now we’re finishing the job. I think in two weeks or maybe a few days longer, we’ll do the job. We want to knock out everything they’ve got.”

The remarks were the strongest indication so far that Trump intends to bring the month-long conflict to a close. The war has reshaped geopolitical dynamics in the Middle East, unsettled global energy markets and become a defining moment of his presidency.

The U.S. president also said that a formal agreement with Tehran would not be necessary for the fighting to end.

Broader financial markets reacted positively to the prospect of de-escalation. Asian equities led the gains, with South Korea’s Kospi surging more than 8% and Japan’s Nikkei climbing 5.2%. Hong Kong’s Hang Seng rose 2%, while China’s CSI 300 advanced 1.7%. European stocks followed suit, with the FTSE 100 up 1.7% and the Stoxx 600 rising 2.2% in early trading.

Gold prices also continued to move higher, gaining 1.3% to trade above $4,700 per ounce, their highest level in nearly two weeks, after jumping 3.5% in the previous session.

Trump is scheduled to address the nation at 9 pm ET on Wednesday.

U.S. equity futures traded higher early Wednesday as investors responded to signs that Washington may be preparing to step away from the ongoing conflict with Iran. Oil prices also dropped below $100 per barrel, though they remain significantly above pre-war levels. In corporate news, Nike (NYSE:NKE) shares fell in after-hours trading following its earnings release, as continued weakness in China weighed on results.

Futures move higher

U.S. stock futures pointed to gains ahead of the open, with markets encouraged by indications that the United States could soon wind down its military campaign in Iran, now entering its second month.

As of 03:25 ET, Dow futures had climbed 270 points, or 0.6%, S&P 500 futures were up 43 points, or 0.7%, and Nasdaq 100 futures had advanced 227 points, or 1.0%.

Wall Street’s major indexes closed higher on Tuesday, supported by rising expectations that the U.S. may soon pull back from its joint operations with Israel against Iran, a conflict that has expanded and raised concerns about broader instability across the Middle East.

Those expectations gained traction after a Wall Street Journal report said U.S. President Donald Trump told advisers he would consider ending the war even if tanker traffic through the Strait of Hormuz remains largely restricted. Analysts at Vital Knowledge said Trump’s later comments to reporters and posts on social media appeared to reinforce the report.

Trump also repeated that negotiations with Iran are progressing, although officials in Tehran have frequently disputed that claim. Still, Iran acknowledged that communications are ongoing between the two sides, while the country’s president said Iran has the “necessary will” to end the war if it receives assurances that further attacks will not occur.

“Risk sentiment has been stabilizing as equities recover and bond spreads ease. Amid the mixed messaging, there were already signs that U.S. President Trump was looking for a way out; markets pounced on headlines that the Iranian president was willing to end the conflict, albeit sticking to Iran’s demands,” ING analysts wrote in a note.

Oil slips following Trump remarks

Oil prices fell below the $100 threshold on Wednesday, reflecting a degree of easing anxiety in energy markets.

Brent crude, the international oil benchmark, dropped 4.2% to $99.60 per barrel for the June contract. After the war broke out in late February, Brent had surged to nearly $120 per barrel, compared with roughly $70 prior to the conflict.

The earlier surge was largely driven by disruptions around the Strait of Hormuz, the strategic shipping lane along Iran’s southern coast that normally handles about 20% of global oil shipments. Persistent threats from Iranian drone and missile strikes significantly reduced tanker traffic, heightening fears of supply disruptions.

The spike in energy costs also fueled concerns that inflation could accelerate, potentially forcing central banks to keep interest rates elevated. Government bond yields rose on those expectations, adding pressure on equity markets.

Speaking to reporters at the White House on Tuesday, Trump said the United States would be “leaving very soon,” adding that the administration’s goal of eliminating Iran’s nuclear threat had been “attained” and that a formal agreement was not required to end the conflict.

However, Trump has yet to outline what steps Washington plans to take regarding the Strait of Hormuz. On Tuesday he said U.S. allies should “take” responsibility for the waterway.

Gold extends gains

Gold prices advanced again in European trading, marking a fourth consecutive session of gains.

Spot gold rose back above $4,700 per ounce. The precious metal gained 3.5% on Tuesday as the U.S. dollar weakened, though it still dropped more than 11% during March, its worst monthly performance since October 2008.

Expectations for persistently high interest rates had weighed on gold, which does not generate yield, for much of the previous month. Those concerns eased somewhat after Federal Reserve Chair Jerome Powell said this week that long-term U.S. inflation expectations remain stable and policy is “in a good place to wait and see.”

ING analysts said gold remains exposed to risks from tighter liquidity conditions and a stronger dollar, but added that “so far pullbacks have been met with buying rather than a loss of confidence.”

Investors are also awaiting upcoming U.S. economic releases, particularly Friday’s nonfarm payrolls report, for further signals about monetary policy and currency trends.

Nike earnings disappoint investors

Separately, Nike (NYSE:NKE) reported quarterly earnings that topped expectations on both revenue and profit, but its results highlighted continued challenges in the Greater China market and declining gross margins.

The athleticwear company’s shares slipped in extended trading.

Nike’s results come as investors look for evidence that CEO Elliott Hill’s turnaround plan is gaining traction. The company has been grappling with slowing revenue in China, margin pressure linked to tariffs and intensifying competition from brands such as Anta and Li Ning in China, Switzerland’s On, and Deckers’ Hoka.

Nike reported earnings of $0.35 per share on revenue of $11.28 billion for its fiscal third quarter. Analysts had forecast $0.30 per share on revenue of $11.23 billion.

Revenue from Greater China, which accounts for roughly 15% of Nike’s total global sales, fell 7% year over year to $1.62 billion, marking the seventh consecutive quarterly decline.

Microsoft in talks over data center power project

In other corporate developments, Microsoft Corporation (NASDAQ:MSFT) is reportedly in exclusive negotiations with Chevron Corp (NYSE:CVX) and Engine No. 1 regarding the development of a large energy complex in West Texas to supply electricity to a data center campus, according to Bloomberg News.

The proposed natural gas-powered facility could cost about $7 billion and initially produce 2,500 megawatts of power, people familiar with the discussions told Bloomberg.

The talks come as Microsoft and other AI-focused technology giants rapidly expand computing infrastructure to meet growing demand for artificial intelligence applications, making reliable power supply a critical part of their strategy.

Microsoft is expected to spend as much as $146 billion on AI-related capital expenditures during its fiscal year 2026.

European equity markets moved higher on Tuesday despite the continued surge in global oil prices, supported in part by reports that U.S. President Donald Trump may be prepared to end the war in Iran even if the Strait of Hormuz remains largely closed.

The pan-European Stoxx 600 gained 0.4%, while Germany’s DAX added 0.3%. The FTSE 100 in the United Kingdom climbed 0.5%, and France’s CAC 40 rose 0.6%.

According to a report from the Wall Street Journal, Trump is open to bringing the military campaign in Iran—now running for more than a month—to a close even if Tehran continues to control the Strait of Hormuz, a key shipping route that normally carries about one-fifth of global oil supply. The waterway’s effective closure in recent weeks has pushed oil prices sharply higher and increased fears of a potential global economic slowdown.

Brent crude, the international benchmark, was trading above $115 per barrel, compared with around $70 per barrel before the conflict began.

The report said Trump and his advisers believe that a full operation to reopen the strait would extend the conflict well beyond the administration’s preferred four-to-six-week timeline. Instead, the strategy has focused on damaging Iran’s naval capabilities and missile stockpiles before gradually reducing military engagement while applying diplomatic pressure on Tehran. If those efforts fail, Washington may encourage European and Gulf allies to take responsibility for restoring access to the strait, according to administration officials cited by the newspaper.

At the same time, the economic consequences of the expanding Middle East conflict—initially sparked by a joint U.S.–Israeli offensive against Iran and now involving multiple regional actors—were reflected in the latest eurozone inflation figures released Tuesday.

Data showed that consumer prices across the 21 countries using the euro rose 2.5% year-on-year in March, up from 1.9% in February, when the broader escalation of the conflict had not yet fully taken hold. Economists had expected inflation to come in slightly higher at 2.6%.

Even so, the figure remains above the European Central Bank’s 2% inflation target. In recent days, ECB officials have indicated that interest rate increases could be considered if price pressures continue to rise as a result of the geopolitical shock triggered by the late-February U.S.–Israeli assault on Iran.

Energy prices have been one of the most visible economic effects of the conflict, with Eurozone energy costs jumping 4.9% this month amid soaring oil and natural gas prices.

U.S. stock futures are pointing to a strong opening on Tuesday, indicating that equities could rebound early in the session after reversing course during the previous day’s trading.

Initial buying interest may stem from reports suggesting President Donald Trump is considering bringing the Middle East conflict to a close.

The Wall Street Journal reported that Trump told advisers he would be willing to halt the U.S. military campaign against Iran even if the Strait of Hormuz remains mostly closed.

According to administration officials cited by the WSJ, Trump and his team believe that a military effort to reopen the strait could extend the conflict beyond the president’s preferred four-to-six-week timeframe.

The officials told the newspaper that the U.S. would instead attempt to pressure Tehran through diplomatic channels to restore shipping through the waterway. If that approach fails, Washington could encourage regional allies to take the lead.

Trump appeared to echo the report in a Truth Social post Tuesday morning urging allies to “build up some delayed courage, go to the Strait, and just TAKE IT.”

“You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us,” Trump said. “Iran has been, essentially, decimated. The hard part is done. Go get your own oil!”

During Monday’s session, stocks initially surged but gradually lost momentum as trading progressed. Major indices pulled back from their intraday highs, with both the Nasdaq and the S&P 500 closing in negative territory.

The Nasdaq dropped 153.72 points, or 0.7%, to end at 20,794.64, while the S&P 500 declined 25.13 points, or 0.4%, finishing at 6,343.72. Both indices recorded their lowest closing levels in nearly eight months.

The Dow Jones Industrial Average bucked the trend, edging up 49.50 points, or 0.1%, to 45,216.14 after briefly dipping into negative territory late in the session.

Part of the early strength on Monday was driven by bargain hunting, as investors sought to buy stocks following recent declines.

Optimistic remarks from President Trump regarding the Middle East situation also helped spark early buying.

In a Truth Social post, Trump said the United States had made “great progress” in talks with a “new, and more reasonable, regime” aimed at ending military operations in Iran.

He also warned that if negotiations fail, the U.S. would “conclude our lovely ‘stay’ in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)”

However, investor sentiment weakened later in the session as oil prices continued climbing amid ongoing concerns about the conflict’s impact on global energy supply.

U.S. crude oil futures jumped more than 3% on the day, closing above $100 per barrel for the first time since July 2022.

Semiconductor stocks led the declines, pushing the Philadelphia Semiconductor Index down 4.2% to its lowest closing level in nearly three months.

Computer hardware and networking stocks also suffered notable losses, weighing heavily on the tech-focused Nasdaq.

Despite the rally in oil prices, oil services companies also declined, with the Philadelphia Oil Service Index falling 3.3%.

Airline stocks were another area of weakness, while biotechnology and pharmaceutical companies posted solid gains.