U.S. stocks rallied into the closing bell Wednesday as investors bet the Iran war may be nearing a resolution, easing fears of a prolonged energy shock and global slowdown. The Dow Jones Industrial Average slipped 72.27 points to 48,463.7, while the S&P 500 climbed 55.57 to 7,022.95 and the Nasdaq surged 376.93 to 24,016.
The S&P 500 not only hit a record intraday high but also closed above 7,000 for the first time, while the Nasdaq posted its first record close since October, signaling a sharp shift in sentiment after weeks of war-driven volatility.
Markets were driven primarily by shifting expectations around the Iran war. President Donald Trump said the conflict was “close to over,” fueling optimism that disruptions to global oil flows could ease and that diplomatic talks may resume. Earlier in the session, equities climbed steadily as traders rotated back into risk assets, particularly technology, while the Dow lagged amid weakness in defensive and industrial names.
Oil prices reflected the same uncertainty. U.S. crude hovered near $91 per barrel, stabilizing after spikes a few days ago above $100 as traders weighed the odds of a ceasefire against ongoing risks to shipping through the Strait of Hormuz.
Still, the Federal Reserve’s Beige Book underscored that the economic fallout from the conflict is already being felt. The report described “moderate” growth but highlighted widespread hesitation among businesses, with firms delaying hiring and investment decisions due to war-related uncertainty and rising input costs. Energy-driven inflation pressures have broadened beyond fuel, even as wage growth remains subdued, suggesting a complicated outlook for monetary policy.
The decline in the VIX to 18.05 suggests investors are growing more comfortable with near-term risk, though volatility remains above pre-conflict levels.
Looking ahead, as the earnings season accelerates, Netflix is in focus.
AInvest reported that, the company’s upcoming report, to be released Thursday, could be a major catalyst, with price hikes, advertising growth, and competitive dynamics following Warner Bros. Discovery’s struggles setting the stage for a potentially significant stock move.