Dow Jones, S&P, Nasdaq open higher on hopes of Iran de-escalation

US stocks opened higher on Wednesday, extending gains from the previous session, as investors reacted to signals pointing towards a possible easing of tensions in the Iran conflict.

At the opening bell, the S&P 500 rose 0.6%, while the Nasdaq Composite and the Dow Jones Industrial Average gained 0.7% and 0.8%, respectively.

The positive start comes amid indications from both Washington and Tehran suggesting a potential diplomatic resolution.

Iran’s President Masoud Pezeshkian said the country has the “necessary will to end this war,” while US President Donald Trump indicated that American involvement could end within two to three weeks.

These developments have supported market sentiment after a strong rally in the previous session, when US indices logged their biggest gains in months.

Oil prices eased as equities moved higher. Brent crude declined over 1.2% to trade near $103 per barrel after earlier slipping below $100, while West Texas Intermediate also dipped below $100 before recovering.

The decline in oil prices reflects expectations that supply disruptions may be limited if the conflict de-escalates. However, uncertainty around the Strait of Hormuz continues to remain a key risk.

On the macro front, US economic data provided additional support. Private sector employment rose by 62,000 in March, while retail sales increased 0.6% month-on-month, both coming in above expectations.

Global markets also mirrored the trend. European equities rose about 2%, while markets in Japan and South Korea saw strong gains.