U.S. Stocks May See Further Upside Following Yesterday’s Spike

The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks likely to see further upside following the substantial rally seen over the course of the previous session.

Optimism about an end to the U.S. war with Iran is likely to contribute to continued strength on Wall Street following the latest comments by President Donald Trump.

Speaking to reporters at the White House on Tuesday, Trump said he expects U.S. military forces to leave Iran in “two or three weeks.”

Trump argued that the U.S. does not have to reach a negotiated settlement to end the war with Iran, calling a deal “irrelevant” because “everything’s been bombed out.”

The White House subsequently revealed Trump will deliver an address to the nation at 9 pm ET tonight to provide an important update on Iran.

The price of crude oil is extending yesterday’s pullback following Trump’s comments, with U.S. crude oil futures falling below $100 a barrel.

After moving sharply higher early in the session, stocks saw further upside over the course of the trading day on Tuesday. The major averages all showed strong upward moves, with the tech-heavy Nasdaq leading the way higher.

The major averages ended the day not far off their highs of the session. The Nasdaq soared 795.99 points or 3.8 percent to 21,590.62, the S&P 500 spiked 184.80 points or 2.9 percent to 6,528.52 and the Dow surged 1,125.37 points or 2.5 percent to 46,341.51.

Despite the rally on the day, the major averages all posted steep losses for the month of March. The Dow plummeted by 5.4 percent, the S&P 500 plunged by 5.1 percent and the Nasdaq tumbled by 4.8 percent.

The rally on Wall Street came following 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.

Stocks saw further upside in afternoon trading as Trump seemed to confirm elements of the Journal’s report in an interview the New York Post, telling the newspaper the U.S. would not be in the region “too much longer.”

In the interview with the Post, Trump also indicated he expects other countries to reopen the Strait of Hormuz, saying, “Let the countries that are using the strait, let them go and open it… because I would imagine whoever’s controlling the oil will be very happy to open the strait.”

The price of crude oil turned lower in reaction to the Post report, generating optimism that the end of the war will lead to a pullback by oil prices and ease inflation concerns.

Bargain hunting also contributed to the strength on Wall Street, with the Nasdaq and the S&P 500 bouncing off their lowest closing levels in almost eight months.

Gold stocks moved sharply higher along with the price of the precious metal, resulting in a 7.2 percent spike by the NYSE Arca Gold Bugs Index.

Substantial strength was also visible among semiconductor stocks, with the Philadelphia Semiconductor Index surging by 6.2 percent after ending Monday’s session at a three-month closing low.

Airline stocks also showed a significant move to the upside on the day, driving the NYSE Arca Airline Index up by 5.4 percent.

Computer hardware, biotechnology and networking stocks also saw considerable strength, while energy stocks came under pressure over the course of the session.

Commodity, Currency Markets

Crude oil futures are tumbling $1.94 to $99.44 a barrel after slumping $1.50 to $101.38 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,741.40, up $93.80 compared to the previous session’s close of $4,647.60. On Tuesday, gold jumped $121.60.

On the currency front, the U.S. dollar is trading at 158.50 yen compared to the 158.71 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1602 compared to yesterday’s $1.1552.

Asia

Asian stocks soared on Wednesday after U.S. stocks saw their best day in almost a year overnight on renewed hopes that the Iran war, which is in its fifth week, could soon end.

U.S. President Donald Trump said the war could end in two weeks sans a deal to re-open the Strait of Hormuz, brining much-needed relief to markets roiled by the conflict. Analysts said it could take six to eight weeks more for oil flows to normalize.

De-escalation hopes weakened the dollar and global bond yields fell sharply, helping gold prices rise above $4,700 an ounce.

Brent crude prices fell almost 4 percent, dropping below $100 a barrel amid the easing of Middle East tensions and industry data showing U.S. crude inventories surged by 10.263 million barrels last week.

Iran said no formal peace talks were underway but signaled a willingness to stop fighting and end the ongoing war if it gets credible guarantees that the attacks will not happen again.

Speaking during a phone call with European Council President Antonio Costa, President Masoud Pezeshkian reiterated Iran’s position that any resolution must include safeguards against future attacks.

China’s Shanghai Composite Index rallied 1.5 percent to 3,948.55 after the release of positive manufacturing data.

After two months of contraction, the official manufacturing PMI Index rose to 50.4 in March, led by strong momentum in export orders.

A separate private survey revealed that manufacturing activity expanded for a fourth straight month but at a slower pace than February.

Hong Kong’s Hang Seng Index jumped 2.0 percent to 25,294.03 following signals from U.S. President Trump that he plans to end military actions in Iran.

Japanese markets rebounded strongly from March’s bruising sell-off as oil prices tumbled on comments from U.S. officials pointing to possible de-escalation in the Iran conflict.

Investors also cheered the results of a central bank survey that showed business sentiment for major Japanese manufacturers improved despite higher oil prices and supply constraints.

The Nikkei 225 Index surged 5.2 percent to 53,739.68, rebounding from its worst month since 2008. The broader Topix Index settled 5 percent higher at 3,670.90. Among the top gainers, Furukawa Electric, Sumitomo Electric and Advantest soared 11-13 percent.

Seoul stocks skyrocketed amid hopes for an end to the Middle East conflict. The Kospi spiked 8.4 percent to 5,478.70, snapping a four-day losing streak. Large-cap tech shares led the uptrend, with Samsung Electronics rising 13.4 percent and SK Hynix adding 10.7 percent.

Australian markets rose sharply to hit a three-week high amid broad-based gains led by gold miners. The benchmark S&P/ASX 200 Index rallied 2.2 percent to 8,671.80, while the broader All Ordinaries Index closed 2.3 percent higher at 8,885.60.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index fell 0.7 percent to 12,825.87, reversing earlier gains, with Infratil and a2 Milk shares coming under heavy selling pressure.

Europe

European stocks have rallied on Wednesday after U.S. President Donald Trump said the Iran war could end in two weeks without a deal to re-open the Strait of Hormuz, brining much-needed relief to markets roiled by the conflict. However, analysts said it could take six to eight weeks more for oil flows to normalize.

“Even if that peace is here tomorrow, still we will not go back to normal in a foreseeable future,” the European Union’s energy commissioner told a news conference after a meeting of EU energy ministers.

In economic news, a survey showed the eurozone manufacturing PMI rose from 50.8 to 51.6 in March, marking a 45-month high.

Currently, the German DAX Index is up by 2.5 percent, the French CAC 40 Index is up by 1.9 percent and the U.K.’s FTSE 100 Index is up by 1.8 percent.

Banks topped the gainers list, with Commerzbank, Deutsche Bank, BNP Paribas, Credit Agricole and Barclays moved sharply higher.

Dutch insurer Aegon has also shown a strong move to the upside after announcing it plans to extend the tenure of Lard Friese as CEO until 2030.

GSK shares has also jumped. The British drugmaker and Shionogi & Co. have completed a transaction restructuring the ownership of ViiV Healthcare.

Derwent London has also surged after the real estate investment trust agreed to sell Horseferry House for £131.8 million.

Online trading firm IG Group Holdings has also moved notably higher after launching a £125 million share buyback program.

U.S. Economic News

Private sector employment in the U.S. increased by more than expected in the month of March, according to a report released by payroll processor ADP on Wednesday.

ADP said private sector employment grew by 62,000 jobs in March after climbing by an upwardly revised 66,000 jobs in February.

Economists had expected private sector employment to rise by 40,000 jobs compared to the addition of 63,000 jobs originally reported for the previous month.

“Overall hiring is steady, but job growth continues to favor certain industries, including health care,” said ADP chief economist Dr. Nela Richardson.

ADP said employment in the education and health services industry jumped by 58,000 jobs, while the construction industry added 30,000 jobs.

Meanwhile, the report said employment in the trade, transportation and utilities sector slumped by 58,000 jobs during the month.

A separate report released by the Commerce Department showed retail sales in the U.S. increased by slightly more than expected in the month of February.

The Commerce Department said retail sales climbed by 0.6 percent in February after edging down by a revised 0.1 percent in January.

Economists had expected retail sales to rise by 0.5 percent compared to the 0.2 percent dip originally reported for the previous month.

Excluding a jump in sales by motor vehicle and parts dealers, retail sales still grew by 0.5 percent in February after coming in unchanged in January. Ex-auto sales were expected to increase by 0.3 percent.

At 9:05 am ET, St. Louis Federal Reserve Bank President Alberto Musalem is due to speak and participate in a moderated conversation on the U.S. economy and monetary policy before the American Enterprise Institute.

Federal Reserve Governor Michael Barr is scheduled to speak on “AI and Consumer Issues” at the National Fair Housing Alliance 2026 Responsible AI Symposium at 9:10 am ET.

At 10 am ET, the Institute for Supply Management is due to release its report on manufacturing activity in the month of March. The manufacturing PMI is expected to edge down to 52.3 in March from 52.4 in February, but a reading above 50 would still indicate growth.

The Commerce Department is also scheduled to release its report on business inventories in the month of January at 10 am ET. Business inventories are expected to inch up by 0.1 percent.

At 10:30 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended March 27th. Crude oil inventories are expected to decrease by 1.3 million barrels.