Reports Trump Looking To End War May Lead To Another Initial Advance On Wall Street

The major U.S. index futures are currently pointing to a sharply higher open on Tuesday, with stocks likely to see another initial advance after turning lower over the course of the previous session.

Early buying interest may be generated in reaction to reports President Donald Trump is looking to end the war in the Middle East.

A report from the Wall Street Journal said Trump told aides he’s willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed.

Citing administration officials, the WSJ said Trump and his aides assessed that a mission to pry open the Strait of Hormuz would push the conflict beyond his timeline of four to six weeks.

The officials told the Journal that Trump would continue to pressure Tehran diplomatically to resume the free flow of trade through the strait, failing which he would pressure allies to take the lead.

Trump appeared to back up the report in a post on Truth Social this 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!”

Stocks showed a strong move to the upside in early trading on Monday but gave back ground over the course of the session. The major averages pulled back well off their highs of the session, with the Nasdaq and the S&P 500 ending the day in negative territory.

The Nasdaq slid 153.72 points or 0.7 percent to 20,794.64 and the S&P 500 fell 25.13 points or 0.4 percent to 6,343.72, dropping to their lowest closing levels in nearly eight months.

The narrower Dow, on the other hand, inched up 49.50 points or 0.1 percent to 45,216.14 after briefly dipping into the red in the final hour of trading.

Bargain hunting contributed to the initial strength on Wall Street, as some traders looked to pick up stocks at reduced levels following recent weakness.

Optimistic comments from President Donald Trump about the war in the Middle East also generated some early buying interest.

Trump claimed in a post on Truth Social this morning that the U.S. has made “great progress” in discussions with a “new, and more reasonable, regime” to end military operations in Iran.

However, Trump warned that if a deal not reached shortly, the U.S. will “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!)”

Buying interest waned over the course of the session, however, as the price of crude oil saw further upside amid ongoing concerns about the impact of the Middle East war.

U.S. crude oil futures surged by more than 3 percent on the day, closing above $100 a barrel for the first time since July 2022.

Semiconductor stocks moved sharply lower over the course of the session, dragging the Philadelphia Semiconductor Index down by 4.2 percent to its lowest closing level in almost three months.

Computer hardware and networking stocks also saw substantial weakness, contributing to the slump by the tech-heavy Nasdaq.

Despite the continued surge by the price of crude oil, oil service stocks also showed a significant move to the downside, with the Philadelphia Oil Service Index plunging by 3.3 percent.

Airline stocks also saw considerable weakness on the day, while biotechnology and pharmaceutical stocks turned in strong performances.

Commodity, Currency Markets

Crude oil futures are inching up $0.06 to $102.94 a barrel after surging $3.24 to $102.88 a barrel on Monday. Meanwhile, after climbing $33.50 to $4,526 an ounce in the previous session, gold futures are jumping $54.70 to $4,580.70 an ounce.

On the currency front, the U.S. dollar is trading at 159.38 yen compared to the 159.72 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1506 compared to yesterday’s $1.1465.

Asia

Asian stocks turned in a mixed performance on Tuesday as investors digested conflicting signals from the ongoing war in the Middle East.

While U.S. President Donald Trump said talks were “going well,” Iran claimed there are no talks, calling Trump’s proposals “unrealistic, illogical and excessive.”

The dollar was on track for its best month since September 2022 after U.S. forces targeted a major ammunition depot in Isfahan, Iran, intensifying regional tensions and fears of impending retaliation.

Gold jumped nearly 1 percent toward $4,600 an ounce but was poised for a monthly loss of about 13 percent, marking its worst monthly performance since October 2008.

Brent crude prices for May delivery were little changed below $113 a barrel but were on track for a record monthly surge of 60 percent.

Iran struck a Kuwaiti oil tanker near a Dubai port early today, highlighting heightened risks for shipping in the Persian Gulf.

Elsewhere, the Wall Street Journal reported that the Trump administration is willing to end the U.S. military campaign against Iran even if the strategically vital Strait of Hormuz remains largely closed.

Instead, the administration plans to achieve core objectives – crippling Iran’s navy and missile capabilities and resuming normal operations in the strait, it was said.

China’s Shanghai Composite Index fell 0.8 percent to 3,891.86 after a volatile session. Seres shares tumbled 3.6 percent after the automaker reported stagnant net profit for the 2025 financial year.

Hong Kong’s Hang Seng Index recovered from an early slide to finish 0.2 percent higher at 24,788.14.

Japanese markets fell sharply on concerns that elevated energy prices could affect the country’s manufacturing sector.

The Nikkei 225 Index closed 1.6 percent lower at 51,063.72, taking its monthly loss to 13.2 percent. The broader Topix Index closed 1.3 percent lower at 3,497.86.

Seoul stocks nosedived as the monthlong Middle East war showed signs of further escalation.

The Kospi plunged 4.3 percent to 5,052.46, extending the losing streak to a fourth straight session as Trump threatened widespread destruction of Iran’s energy resources and other vital infrastructure, and Iran approved a draft bill to introduce a toll system for the Strait of Hormuz.

Selling was seen across the board, with Hyundai Motor, Samsung Electronics and SK Hynix plummeting 5-8 percent.

Australian markets ended modestly higher after a rocky start as oil prices remained on track for a record monthly rise. The benchmark S&P/ASX 200 Index edged up by 0.3 percent to 8,481.80, while the broader All Ordinaries Index closed up 0.3 percent at 8,683.90.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rallied 1.3 percent to 12,912.11, snapping a two-session decline.

Europe

European stocks have moved higher on Tuesday after reports emerged that the Trump administration is willing to end U.S. military operations against Iran even if the Strait of Hormuz remains largely closed.

The British pound was flat after data showed Britain’s economy barely expanded in the fourth quarter, as initially estimated.

Gross domestic product grew 0.1 percent from the prior quarter, which was unrevised from the previous estimate, according to final data from the Office for National Statistics. That followed similar growth in the third quarter.

Elsewhere, German retail sales declined in February due to a decrease in food sales, while the number of unemployed people in the country remained unchanged in March, separate reports revealed.

While the French CAC 40 Index is up by 0.6 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both up by 0.9 percent.

Ashmore Group shares have moved sharply higher. Japan Post Insurance plans to take up to a 2.9 percent stake in the British asset manager and invest $1 billion in Ashmore-managed emerging market funds.

Drugmaker Sanofi has also jumped after receiving conditional marketing authorization for Rezurock from the European Commission.

Train maker Alstom has also surged after securing an $800 million share in a $2.75 billion multinational systems contract in the AMECA region.

Shares of Domino’s Pizza Group have also advanced in London. The company has officially appointed interim chief executive Nicola Frampton as its permanent CEO.

Unilever has also risen. The FMCG giant said it was in advanced talks to combine its food business with spice maker McCormick.

Meanwhile, Casino Group shares have tumbled in Paris as the retailer announced key terms of the new proposals regarding the project to adapt and strengthen its financial structure.

U.S. Economic News

Standard & Poor’s is due to release its report on home prices in major metropolitan areas in the month of January at 9 am ET. The annual rate of home price growth is expected to edge down to 1.3 percent in January from 1.4 percent in December.

At 9:45 am ET, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of March. The Chicago business barometer is expected to drop to 54.0 in March from 57.7 in February, but a reading above 50 would still indicate growth.

The Conference Board is due to release its report on consumer confidence in the month of March at 10 am ET. The consumer confidence index is expected to fall to 88.5 in March after rising to 91.2 in February.

Also at 10 am ET, the Labor Department is scheduled to release its report on job openings in the month of February. Job openings are expected to dip to 6.920 million in February from 6.946 million in January.

Chicago Federal Reserve President Austan Goolsbee is due to deliver opening remarks before an “Human Capital in a Time of Low Real Rates” event at 12 pm ET.

At 1:10 pm ET, Kansas City Federal Reserve President Jeff Schmid is scheduled to speak on monetary policy and the economic outlook at the Rotary Club of Oklahoma City.

Federal Reserve Governor Michael Barr is due to speak on “Stablecoins” at The Federalist Society’s The GENIUS Act in Practice: Key Questions for Stablecoin Regulation at 3 pm ET.

At 5:10 pm ET, Federal Reserve Vice Chair for Supervision Michelle Bowman is scheduled to speak on “Small Business” at CBA Live 2026.