US stocks rally after Iran expresses 'will' to end war
&imwidth=600&imheight=450&format=webp&quality=medium "US stocks rally after Iran expresses 'will' to end war")
For representative purpose only Photograph: (Pexels)
Wall Street surged as Iran expressed openness to ending conflict with the US and Israel, boosting investor confidence across major indices
Wall Street stocks extended their rally on Tuesday (March 31) after Iran’s President Masoud Pezeshkian signaled a willingness to end the conflict with the United States and Israel under certain conditions. As of around 1720 GMT, the Dow Jones Industrial Average rose 2.1% to 49,164.55. The S&P 500 climbed 2.5% to 6,503.08, while the Nasdaq Composite surged 3.6% to 21,533.15.
The equities market gained momentum following a report suggesting the president is open to ending the conflict with Iran, even if the Strait of Hormuz remains partially closed, according to Briefing.com analyst Patrick O'Hare. He described the market’s reaction as unusual, noting that such a scenario would not necessarily guarantee the resumption of oil shipments. However, he added that stocks are currently oversold in the short term.
"The equities 'market has been energized by a report that the president is willing to end the war with Iran, even if the Strait of Hormuz is not fully open," said O'Hare. "The headline material suggesting the US is traveling toward an off-ramp is enough to prompt some short-covering activity and some speculation wrapped up in the thought of not wanting to miss a rebound effort," said O'Hare.
He explained that investors who short stocks, betting on price declines, often rush to buy shares when they anticipate a rebound, aiming to limit potential losses. O'Hare emphasized that oil prices will be the key signal in determining whether the potential de-escalation is genuine or temporary. "The US may want to be done with Iran, but if the Strait of Hormuz is not fully open, the Iran issue will not be done with upsetting the global economy," he said.
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Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations, and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos, and videos.
