US stocks close first session of April higher amid speculation over end of Iran war

Wall Street ended Wednesday’s session with strong gains, driven by a rise in Alphabet and other major stocks, after US President Donald Trump signaled that the conflict in the Middle East may be nearing an end. Trump told Reuters hours before his speech on the war: “We will get out of Iran quickly,” adding that Washington could return to carry out “targeted strikes” if necessary.

Thomas Martin, portfolio manager at Globalt Investments, said that Trump’s statements sometimes change and everyone is trying to interpret what he actually means, noting that markets hope for a positive outcome and for the war to end soon.

Major technology stocks advanced, with Alphabet rising 3.4%, while Meta Platforms and Amazon each posted gains of more than 1%. Wall Street extended gains for a second consecutive day as investors bet that the US-Israeli war on Iran could end soon, after higher energy prices last month fueled global inflation concerns due to disrupted oil flows through the Strait of Hormuz.

In terms of index performance, the S&P 500 remains down about 4% so far in 2026 and is trading below 20 times forward earnings, its lowest valuation multiple in 10 months. The PHLX semiconductor index rose 2.82% for a second straight session, while space-related stocks climbed after SpaceX filed confidentially for an initial public offering, lifting shares of Intuitive Machines by 9%, Planet Labs by 10%, and Rocket Lab by 2%, while the Destiny Tech100 fund, which holds SpaceX shares, rose 9.1%.

On the corporate front, Eli Lilly shares rose 3.8% after the US Food and Drug Administration approved a weight-loss drug called Foundayo, while Intel surged 8.8% after announcing it would buy back Apollo’s stake in its Ireland plant for $14.2 billion. In contrast, Nike shares fell 15.5% to their lowest level in a decade after the company forecast an unexpected decline in fourth-quarter sales.

The S&P 500 closed up 0.72% at 6,575.32 points, the Nasdaq rose 1.16% to 21,840.95 points, and the Dow Jones Industrial Average gained 0.48% to 46,565.74 points.

The VIX volatility index, known as Wall Street’s fear gauge, fell to its lowest level in more than a week.

Oil prices dropped sharply, with the S&P 500 energy index falling 3.9% to its lowest level in more than a week, while airline stocks rose 2.3%.

On the economic front, the ADP report showed steady growth in private payrolls in March, while retail sales recorded their biggest increase in seven months in February, and US manufacturing activity rebounded last month according to the ISM index. Nonfarm payrolls data for March is expected to be the main focus on Friday, although US markets will be closed for the Good Friday holiday.

Amid rising inflation concerns, traders now see interest rate hikes by the Federal Reserve by year-end as more likely than cuts. Advancing stocks outnumbered decliners on the S&P 500 by 1.5 to 1, with the index recording six new highs and 12 new lows, while the Nasdaq posted 63 new highs and 102 new lows.

Trading volume on US exchanges reached 18.8 billion shares, compared to an average of 20.2 billion shares over the past 20 sessions.