Stocks rose on Tuesday after new reports gave investors hope that the war with Iran could soon end.
The Dow Jones Industrial Average rose by 1125.37 points, or 2.49%, and closed at 46,341.51. The move followed an unconfirmed report that Iranian President Masoud Pezeshkian was open to ending the war with guarantees. The S&P 500 rose 2.91% to end at 6,528.52, and the Nasdaq Composite advanced 3.83% to end at 21,590.63. Each of the three indices recorded their best day since May.
Pezeshkian made similar remarks earlier this month, saying in a post on X that “the only way to end this war – ignited by the Zionist regime and [SAD-a] – recognition of Iran’s legitimate rights, payment of reparations and firm international guarantees against future aggression”.
The Wall Street Journal reported that President Donald Trump has told aides he is willing to end military hostilities in the Middle East even if the Strait of Hormuz remains largely closed. The New York Post later reported that the president said he believed the Iran war would likely end soon and other nations would take the lead in reopening the Strait of Hormuz, SEEbiz reported.
Technology, which has been under pressure since the beginning of the conflict, has grown greatly. The Technology Select Sector SPDR Fund ( XLK ) closed more than 4% higher. Nvidia rose by 5.6% and Microsoft by 3.1%.
“Any move toward ending the war in general, the stock market likes, so you get that relief growth,” said Eric Deaton, president of The Wealth Alliance. “But no, we’re not out of danger.”
“The bottom line is that if we haven’t solved the oil problem, then it’s still putting pressure on,” Deaton added.
Brent crude oil prices remained higher after Bloomberg reported that Iran had struck a Kuwaiti tanker in Dubai waters. The Dubai Government Media Office said in a post on X that there were no reported injuries and that “the safety of all 24 crew members has been ensured”.
Brent crude oil futures rose 4.94% to $118.35 a barrel – the highest closing price since June 16, 2022. However, West Texas Intermediate futures fell 1.46% to $101.38 a barrel.
