Nasdaq and Dow stocks set to continue rally on hopes for end of Iran war

• Iranian President Pezeshkian indicated willingness to end the war with guarantees against future aggression, while President Trump predicted resolution 'within two weeks, maybe three' but suggested the US would not get involved in reopening the Strait of Hormuz
• Oil prices showed volatility with WTI crude dropping below $98 before edging up on uncertain prospects for the Strait of Hormuz, while conflicting reports emerged from Iran's parliament denying negotiations and the UAE preparing to forcibly reopen the waterway
• Analysts warn investors may be miscalculating the war's duration and not fully pricing in economic damage from damaged Gulf energy infrastructure, halted production, and closed shipping lanes

Market Summary: US Stocks Rally on Middle East Peace Hopes

Market Performance:

US stock futures pointed to continued gains on Wednesday, April 1, 2026, with Nasdaq futures up 0.9% and Dow Jones and S&P 500 futures rising 0.7%. This follows a significant rally on Tuesday when the Nasdaq surged 3.8% to 21,591, the S&P 500 climbed 2.9% to 6,529, and the Dow Jones jumped 1,125 points (2.5%) to 46,342. The Russell 2000 gained 3.4% to 2,496. The S&P 500 recorded its best day since May of the previous year.

Key Driver:

Markets rallied on potential diplomatic progress regarding the Iran conflict. Iranian President Pezeshkian indicated willingness to end the war with guarantees against future aggression. President Trump predicted ending the war "within two weeks, maybe three" but stated the US wouldn't intervene regarding the Strait of Hormuz.

Commodities and Bonds:

WTI crude oil dropped below $98 before edging higher on uncertainty around the Strait of Hormuz reopening. Conflicting reports emerged from Iran's parliament denying negotiations while the UAE reportedly prepares to help allies forcibly reopen the waterway. Gold climbed above $4,700 per ounce from around $4,500. The 10-year US Treasury yield fell to two-week lows.

Market Context:

March marked the worst monthly performance since 2022, with major benchmarks down over 5%. Analysts warn investors may be underpricing economic damage from disrupted Gulf energy infrastructure and closed shipping lanes.

Upcoming Events:

Today's calendar includes earnings from Conagra Brands, Lamb Weston, and Cal-Maine Foods, plus economic data on retail sales, ADP employment, and ISM manufacturing PMI.