Dow Jones jumps over 300 points as hopes of Iran war end lift stocks

• The CBOE Volatility Index fell to a one-week low, and markets priced out Fed rate cuts for 2026 due to conflict-driven energy price inflation concerns
• West Texas Intermediate crude declined about 1% to just above $100 per barrel, while Brent crude slipped around 2% to above $102 amid expectations of resumed shipping through the Strait of Hormuz
• Nike stock dropped 11.7% after forecasting a surprise sales decline, while February retail sales rose 0.6%, slightly above expectations

Market Summary: Dow Jones Rallies on Iran Conflict De-escalation Hopes

Key Market Movements:

U.S. equities surged Wednesday as geopolitical tensions eased, with the Dow Jones Industrial Average jumping 322 points (+0.7%), the S&P 500 rising 0.76%, and the Nasdaq 100 gaining nearly 1%. The CBOE Volatility Index fell to a one-week low, signaling reduced investor anxiety. This rally extended Tuesday's session, which marked the biggest one-day gain in nearly a year.

Geopolitical Catalyst:

Markets responded positively to indications from President Donald Trump and Secretary of State Marco Rubio that the U.S.-Iran conflict may be nearing conclusion through potential direct talks or de-escalation. An unverified report suggested Iranian President Masoud Pezeshkian might pursue peace under certain conditions, including recognition of Iran's rights, reparations, and guarantees against future aggression.

Energy Sector Impact:

Oil prices retreated on ceasefire optimism, with West Texas Intermediate futures declining approximately 1% to just above $100 per barrel and Brent crude dropping around 2% to above $102. Prices fell as much as 3% intraday on expectations that the Strait of Hormuz—a critical oil transit route—could reopen. Energy stocks declined alongside crude prices.

Economic Context:

Despite the rally, the S&P 500 and Nasdaq recorded their steepest monthly declines in a year for March. February retail sales rose 0.6%, slightly beating expectations. Markets have priced out Federal Reserve rate cuts for 2026 due to conflict-driven inflation concerns.

Corporate Developments:

Nike shares plunged 11.7% after forecasting a surprise fourth-quarter sales decline. Investors await Trump's address later Wednesday for further geopolitical clarity. U.S. markets will be closed Friday for Good Friday.