U.S. stock index futures indicate a higher open on Wednesday, suggesting equities could continue to advance after the strong rally seen in the previous trading session.
Investor sentiment has been lifted by growing hopes that the U.S. conflict with Iran may soon come to an end, following fresh remarks from President Donald Trump.
Speaking to reporters at the White House on Tuesday, Trump said he expects American military forces to withdraw from Iran within “two or three weeks.”
Trump also argued that a formal agreement with Iran would not be necessary to conclude the conflict, describing a deal as “irrelevant” because “everything’s been bombed out.”
The White House later confirmed that Trump will address the nation at 9 p.m. ET on Wednesday to deliver an important update regarding Iran.
Oil prices continued their decline following the president’s comments, with U.S. crude futures slipping below $100 per barrel.
Strong rally on Wall Street
Stocks extended early gains throughout Tuesday’s session, with major indices finishing the day significantly higher. Technology shares led the advance.
By the closing bell, the main indices were near their session highs. The Nasdaq surged 795.99 points, or 3.8%, to 21,590.62, while the S&P 500 climbed 184.80 points, or 2.9%, to 6,528.52. The Dow Jones Industrial Average gained 1,125.37 points, or 2.5%, to 46,341.51.
Despite Tuesday’s rebound, all three benchmarks recorded notable declines for the month of March. The Dow dropped 5.4%, the S&P 500 fell 5.1%, and the Nasdaq declined 4.8% over the month.
Reports of potential war exit boost markets
The rally followed reports suggesting the U.S. may be preparing to wind down its military campaign in the Middle East.
According to the Wall Street Journal, Trump told advisers he would be willing to end the U.S. operation against Iran even if the Strait of Hormuz remains largely closed.
Administration officials cited in the report said Trump and his advisers concluded that reopening the strait by force would likely extend the conflict beyond his preferred timeline of four to six weeks.
Those officials added that the U.S. president intends to continue diplomatic pressure on Tehran to restore the flow of shipping through the strait. If that effort fails, Washington could urge allied countries to take responsibility for reopening the passage.
Stocks gained further momentum in afternoon trading after Trump appeared to confirm elements of the Journal’s report during an interview with the New York Post, telling the newspaper the United States would not remain in the region “too much longer.”
In the same interview, Trump suggested that other nations should be responsible for reopening the Strait of Hormuz, stating: “Let the countries that are using the strait, let them go and open it… because I would imagine whoever’s controlling the oil will be very happy to open the strait.”
Following those remarks, oil prices moved lower, boosting hopes that an eventual end to the conflict could ease energy costs and reduce inflation pressures.
Sector movements
Bargain hunting also supported equities, with the Nasdaq and S&P 500 rebounding from their lowest closing levels in nearly eight months.
Gold-related stocks climbed sharply alongside rising bullion prices, pushing the NYSE Arca Gold Bugs Index up 7.2%.
Semiconductor shares also recorded strong gains. The Philadelphia Semiconductor Index jumped 6.2% after closing Monday at its lowest level in three months.
Airline stocks posted solid advances as well, lifting the NYSE Arca Airline Index by 5.4%.
Additional strength was visible in computer hardware, biotechnology, and networking stocks, while energy stocks weakened during the session as oil prices pulled back.