Dow soars over 1,100 points as Trump sparks hope on Wall Street that Iran war is nearing end
Wall Street experienced a significant surge on Tuesday as speculation arose about a potential de-escalation in the Middle East conflict. The conflict had caused oil prices to soar, leading to concerns about global inflation in recent weeks.
All three major indexes saw their best performance since May following reports that President Trump was considering ending the military campaign against Iran, even if the Strait of Hormuz remained mostly closed.
The Dow Jones Industrial Average rose by 1,125 points, or 2.5%, reaching 46,341.51 points. The S&P 500 and the Nasdaq also saw substantial jumps of nearly 3% and 3.8%, respectively.
Concerns had been raised last week as both the Dow and the Nasdaq closed 10% below their record highs, indicating a correction. The month and quarter had ended in the red for these indexes.
Defense Secretary Pete Hegseth emphasized the importance of the next few days in the conflict with Iran and warned of escalating tensions if a deal was not reached.
The ongoing war had led to the S&P 500 and the Dow facing their most substantial quarterly declines since early 2022. Investors feared that increased fuel costs could dampen demand and lead to the Federal Reserve raising interest rates to combat inflation.
Major companies in the stock market, including Nvidia, Alphabet, Meta Platforms, and Amazon, experienced significant gains as the market responded positively to the news.
Follow The Post’s coverage of the United States’ airstrikes on Iran:
CoreWeave saw a 10% jump after securing an $8.5 billion loan for AI infrastructure expansion, while Marvell Technology surged 13% following a $2 billion investment from Nvidia.
Many technology stocks had struggled in 2026 due to concerns about the pace of returns on investments in AI by companies like Microsoft, Alphabet, and Amazon.
Government data showed a larger-than-expected decline in US job openings in February, with hiring reaching its lowest level in nearly six years.
The spike in oil prices due to the war with Iran reignited concerns about inflation, leading money market traders to believe that the Fed was more likely to raise interest rates by the end of the year.
Unilever announced a deal to separate its food unit and merge it with McCormick, valuing the spice maker at approximately $44.8 billion. McCormick’s shares fell by 5.8% in response.
Constellation Energy experienced an almost 8% drop after forecasting 2026 profits below Wall Street expectations.
