Trump and state secretary Marco Rubio said today that the end of the Iran war could be near, signaling potential for both direct talks with the Iranian leadership and a winding down of the conflict without a deal.
Trump is scheduled to address the country at 9pm.
Global markets rallied, with Europe’s STOXX 600 up over 2%, South Korea’s Kospi rising as much as 9% and Japan’s Nikkei climbing roughly 5%, as markets hoped for a restoration of shipping through the Strait of Hormuz, one of the world’s key oil transit chokepoints.
Oil prices, which had surged since the war erupted in late February, fell as much as 3% on Wednesday.
US energy stocks slipped in premarket trading, with Exxon Mobil and Chevron down about 2% each.
“While signs of a willingness to negotiate are positive, hurdles remain before an actual end to the conflict.
“A resumption of energy flows may take longer still,” said analysts at UBS Global Wealth Management.
“A sudden end to the conflict, while leaving the status of the Strait of Hormuz unclear, may also leave energy prices higher for longer,” said analysts.
At 6.34am, Dow E-minis were up 199 points, or 0.43%, S&P 500 E-minis were up 30.5 points, or 0.46%, and Nasdaq 100 E-minis were up 151.75 points, or 0.63%.
The CBOE Volatility Index, known as Wall Street’s fear gauge, slipped to an over one-week low and was last down 0.41 points at 24.85.
Despite yesterday’s rally, the S&P 500 and the Nasdaq posted their steepest monthly declines in a year, while the Dow logged its sharpest drop since September 2022.
Investors will also parse a slew of economic data throughout the day, including private payrolls, retail sales and business activity surveys that could provide a read on how the economy is holding up.
Domestic private payroll figures for March will be in focus on Friday, although US markets will be closed for the Good Friday holiday.
Money market participants had priced out any easing from the US Federal Reserve (Fed) this year after the war outbreak stoked energy-driven inflation fears, clouding the outlook for interest rate cuts. They had previously expected two reductions.
Comments from Fed policymakers Alberto Musalem and Michael Barr will be tracked for any clues on the monetary policy path.
In early movers, Nike slumped 10.4% after the sportswear giant forecast a surprise drop in its fourth-quarter sales.
Shares of RH slid 18.6% after the luxury furniture retailer forecast annual revenue growth below estimates and missed expectations for fourth-quarter revenue.
Shares of nCino jumped 20.8% after the banking software provider forecast first-quarter revenue above estimates and announced an accelerated US$100 million share repurchase program.