U. S. stock markets extended their gains on Wednesday, closing sharply higher for the second day in a row as investors grew more optimistic about a possible resolution to the ongoing war with Iran. The S&P 500 rose 0.72% to close at 6,575.32, while the Dow Jones Industrial Average gained 0.48%, finishing at 46,565.74. The Nasdaq Composite led the charge, climbing 1.16% to 21,840.95, driven by strong performance in the technology sector.
The positive momentum was further fueled by a pullback in oil prices, which have been elevated since the start of the conflict. West Texas Intermediate (WTI) crude slipped 1.10% to $100.30 per barrel, and Brent crude dropped 2.4% to $101.80. This easing of oil prices provided some relief to concerns about rising inflation and its potential impact on consumer spending. However, U. S. gas prices had already risen above $4 a gallon.
Contributing to the de-escalation narrative, President Trump indicated on Tuesday that U. S. military forces could withdraw from Iran within two to three weeks. He also suggested shifting responsibility for the Strait of Hormuz to countries that rely on it for oil and shipping. Despite these positive signals, some analysts remain cautious, noting that previous instances of optimism have been undermined by continued fighting.
Despite the overall positive trend, some companies experienced declines. Nike sank 15.5% despite reporting strong earnings, due to lackluster financial forecasts. Energy companies like Exxon Mobil and Chevron also fell, mirroring the drop in crude oil prices. The market will be closed on Friday, April 3, in observance of Good Friday.
