U.S. stocks opened higher on Wednesday, while oil prices clawed back some earlier losses, as investors assessed hopes for an impending end to the war in Iran. President Donald Trump said the new Iranian regime had asked for a ceasefire.
At 09:32 ET (13:32 GMT), the benchmark S&P 500 index was up 0.7% to 6,574.43 points, the tech-heavy NASDAQ Composite added 1% to 21,796.11 points, and the blue-chip Dow Jones Industrial Average gained 0.7% to 46,673.19 points.
Track U.S. stock futures with InvestingPro - now 50% off Trump says new Iranian regime asked for ceasefire Trump on Wednesday said on his Truth Social service that "Iran’s New Regime President, much less Radicalized and far more intelligent than his predecessors, has just asked the United States of America for a CEASEFIRE!"
"We will consider when Hormuz Strait is open, free, and clear. Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!" the president added.
If confirmed by Iran, this would mark another significant step towards de-escalation, even with uncertainty around the Strait of Hormuz. The critical waterway through which a fifth of the world’s oil and gas supply flows has been effectively shuttered by Iran since the start of the conflict, leading to surging oil prices across the globe.
Wall Street coming off its best day since May 2025 The three main averages on Tuesday posted their best daily gain since May 12 last year, with the benchmark S&P 500 index gaining nearly 3% and the tech-heavy NASDAQ Composite adding almost 4%.
The euphoric relief rally was sparked by growing optimism that the U.S. will soon exit its joint assault with Israel against Tehran, which has escalated into a wider war threatening to engulf countries around the Middle East.
Underpinning these expectations was a Wall Street Journal article suggesting that U.S. President Donald Trump had told aides that he was open to leaving the war even if the Strait of Hormuz remained largely blocked to tanker traffic. In later remarks to reporters and posts on social media, Trump effectively confirmed the report, analysts at Vital Knowledge said in a note to clients. Meanwhile, Iran’s state TV quoted the country’s president as saying it was "prepared to end" the war if offered security guarantees.
Trump also reiterated that negotiations with Iran are going well, a claim that has been frequently disputed by officials in Tehran. However, Iran did acknowledge that messages are being exchanged between both sides, while the country’s president indicated that Iran has the "necessary will" to end the war should it receive guarantees that it will not be attacked again.
"There’s no doubt that yesterday’s rebound has been impressive and helped along by a pullback in oil prices. But the situation is muddied due to end of quarter position-squaring. It’s also challenging to express just what investors are pricing in, and what they’re not," David Morrison, senior market analyst at Trade Nation, said.
