The US will be “out of Iran pretty quickly” and could return for “spot hits” if needed, Trump told Reuters, hours before he was scheduled to address the nation about the war.
“We have Trump’s comments, which tend to change a bit,” said Thomas Martin, senior portfolio manager at Globalt Investments. “Everybody’s trying to guess as to what he really means by what he’s saying. The markets want it to be positive, they want the war to be over.”
Technology-related heavyweights rallied, with Alphabet rising 3.4%, and Meta Platforms and Amazon each up over 1%.
Wall Street has rallied for two straight days as investors speculated that the US and Israeli war on Iran will end soon. Energy prices have spiked in the latest month, sparking fears of global inflation, as the conflict choked the flow of oil through the Strait of Hormuz.
With Wednesday’s gain, the S&P 500 remains down 4% so far in 2026.The index is trading at under 20 times expected earnings, its lowest earnings multiple in 10 months, according to LSEG data.
The PHLX chip index jumped 2.82%, up for a second session.
SpaceX confidentially filed for an initial public offering, a person familiar with the matter told Reuters, sending space stocks higher.
Intuitive Machines gained 9%, Planet Labs rose 10% and Rocket Lab added 2%. The Destiny Tech100 investment fund, which owns SpaceX shares, jumped by 9.1%.
Eli Lilly rose 3.8% after the US Food and Drug Administration approved the drugmaker’s weight loss pill, to be sold under the brand name Foundayo.
Intel surged 8.8% after it said it would buy back Apollo’s stake in its Ireland factory for US$14.2 billion.
The S&P 500 climbed 0.72% to end the session at 6,575.32 points. The Nasdaq gained 1.16% to 21,840.95 points, while the Dow Jones Industrial Average rose 0.48% to 46,565.74 points.
The CBOE Volatility Index, Wall Street’s fear gauge, slipped to its lowest in more than a week.
Oil prices fell sharply, and the S&P 500 energy index slid 3.9% to its lowest in over a week. Airlines jumped, with the S&P Composite Passenger Airlines sub-index up 2.3%.
Nike slumped 15.5% to its lowest in a decade after the sportswear giant forecast a surprise drop in its fourth-quarter sales.
ADP’s national employment report showed private payrolls increased steadily in March, while retail sales increased by the most in seven months in February. US manufacturing activity picked up last month, according to the Institute for Supply Management’s gauge.
Nonfarm payroll figures for March will be in focus on Friday, although US markets will be closed for the Good Friday holiday.
Due to increased fears of inflation, traders now believe it is more likely the Federal Reserve will raise interest rates by year-end than cut rates.
Advancing issues outnumbered falling ones within the S&P 500 by a 1.5-to-one ratio.
The S&P 500 posted 6 new highs and 12 new lows; the Nasdaq recorded 63 new highs and 102 new lows.
Volume on US exchanges was relatively light, with 18.8 billion shares traded, compared to an average of 20.2 billion shares over the previous 20 sessions.