Wall Street Soars on Iran Conflict Easing Hopes

Wall Street posted its strongest session since May as hopes of easing tensions in the Iran conflict boosted investor sentiment. The Dow, S&P 500, and Nasdaq futures all traded higher after Iranian President Masoud Pezeshkian signaled openness to ending the conflict if Iran's 'legitimate rights' were recognized.

U.S. President Donald Trump said the U.S. could exit military hostilities within two to three weeks, suggesting that military goals had largely been accomplished and other nations could take the lead in reopening the Strait of Hormuz.

Tech stocks led the rebound, with XLK rising over 4%, Nvidia climbing 5.6%, and Microsoft gaining 3.1%. The development comes after a brutal quarter for the major averages, with the S&P 500 posting its worst performance in a year and the Dow and Nasdaq experiencing their weakest quarterly performances since 2022.

Despite the rally, disruptions tied to the Strait of Hormuz continued to influence energy markets. Brent crude settled up 4.94% at $118.35 per barrel, while West Texas Intermediate crude settled down 1.46% at $101.38 per barrel.