U.S. Stocks Rise as Ceasefire Hopes Offset Oil Volatility

U.S. equities opened higher on Wednesday, supported by growing optimism that tensions with Iran could ease. The S&P 500 rose 0.7%, while the NASDAQ Composite gained 1%, and the Dow Jones Industrial Average advanced 0.7%.

Investor sentiment improved after Donald Trump stated that Iran’s new leadership had requested a ceasefire, raising hopes for a potential de-escalation. However, uncertainty remains around the Strait of Hormuz, a critical global energy route that has seen disruptions since the conflict began.

Markets were also rebounding from strong gains in the previous session, driven by expectations that the U.S. may scale back its military involvement. Still, analysts warned that investors may be underestimating the long-term economic damage, particularly to energy infrastructure and supply chains.

Oil prices showed volatility, briefly falling below $100 per barrel before stabilizing. Despite the pullback, prices remain elevated compared to pre-conflict levels, reflecting ongoing supply concerns tied to disruptions in the region.

Economic data provided additional support, as U.S. retail sales exceeded expectations, signaling resilience in consumer spending. However, this data did not yet reflect the economic impact of the ongoing conflict.

On the corporate side, Nike shares fell sharply despite beating earnings expectations, as continued weakness in the China market and margin pressures weighed on investor sentiment.