US stocks close higher after Trump says Iran war could end within weeks

ISTANBUL

The New York Stock Exchange closed midweek with gains on optimism that the Iran war may end soon.

The Dow added 0.48%, or 224.23 points, to close at 46,565.74.

The Nasdaq composite rose 1.16%, or 250.32 points, to 21,840.95, while the S&P 500 increased 0.72%, or 46.8 points, to 6,575.32.

The Volatility Index (VIX), often referred to as the market’s “fear index,” fell 2.81% to 24.54.

Stocks rallied after US President Donald Trump said Wednesday that Iran’s president asked Washington for a ceasefire, but the US would only consider the offer once the Strait of Hormuz is “open, free, and clear.”

Until then, he said, the US would keep up its attacks on Iran.

The remarks came after Trump told reporters at the White House late Tuesday that he expected US military forces to leave Iran within “two or three weeks.” Trump also said the war could end without a deal with Tehran -- remarks that markets interpreted as a sign of possible de-escalation.

Amid the developments, the price of Brent crude oil fell 2.9% to $100.95 per barrel as of 2030GMT. Falling energy prices also supported equities.

Intel shares surged 8.8% after the company announced it will repurchase Apollo Global Management’s 49% equity stake in their Fab 34 joint venture in Ireland for $14.2 billion.

On the data side, US retail sales rose 0.6% month-over-month in February, exceeding expectations.

Private-sector employment in the US rose by 62,000 in March, exceeding expectations.

- European stocks

European stocks also saw increases, with the pan-European Stoxx Europe 600 index gaining 2.5% to close at 597.69 points.

The UK’s FTSE 100 increased 1.85% to 10,364.79, Germany’s DAX 40 went up 2.73% to 23,298.89, and France’s CAC 40 added 2.1% to 7,981.27.

Italy’s FTSE MIB 30 was up 3.17% to finish at 45,714.95, while Spain’s IBEX 35 posted an increase of 3.11% to 17,580.4.