U.S. stocks kicked off the second quarter with a broad-based rally on Wednesday as growing optimism around a potential de-escalation in the Iran conflict combined with better-than-expected economic data to lift all three major indexes. The tech-heavy Nasdaq led the charge, climbing more than one percent, while defensive energy names lagged as crude oil prices pulled back on the prospect of easing Middle East tensions.
The catalyst mix was potent. Iranian President Masoud Pezeshkian said Iran has “the necessary will to end this war” under certain conditions, while President Trump signaled U.S. involvement could wind down within weeks — with a national address scheduled for Wednesday evening expected to outline a drawdown timeline. On the economic front, the ADP private payrolls report showed 62,000 jobs added in March, handily beating the 40,000 consensus estimate. Retail sales also came in above expectations at 0.6% month-over-month, giving investors further confidence that the consumer remains resilient even as trade uncertainty lingers.
Closing Numbers
The Nasdaq Composite rose 250.32 points, or 1.16%, to close at 21,840.95. The S&P 500 gained 46.80 points, or 0.72%, finishing at 6,575.32. The Dow Jones Industrial Average added 224.23 points, or 0.48%, to end the session at 46,565.74. It was the second consecutive day of gains for all three benchmarks.
Notable Movers
Intel (NASDAQ:INTC) surged nearly 9% after announcing it will buy back Apollo Global Management’s 49% stake in its Irish Fab 34 chip fabrication facility for $14.2 billion. The move signals renewed confidence in Intel’s manufacturing strategy as demand for CPU-driven AI workloads grows alongside the GPU boom. Memory chipmakers rallied in sympathy, with Micron (MU) jumping about 9% on a bullish Cantor Fitzgerald note.
Eli Lilly (LLY) climbed roughly 4% after the FDA approved Foundayo, the company’s new oral GLP-1 weight-loss pill. Analysts at several firms project the drug could generate up to $18 billion in annual sales by the end of the decade, intensifying the competitive battle with Novo Nordisk in the red-hot obesity treatment space.
On the downside, Nike (NKE) was the session’s biggest blue-chip loser, tumbling more than 15% after issuing weak fourth-quarter guidance that called for a 2-4% revenue decline. Management pointed to a 20% drop in China sales as the primary headwind. Luxury home furnisher RH also cratered nearly 20% after missing earnings estimates.
Boeing (BA) gained 4% on a new seven-year defense framework agreement to triple production of PAC-3 missile seekers, while Chevron (CVX) slid roughly 4.5% as oil prices retreated below $100 a barrel on the ceasefire hopes.
Looking Ahead
All eyes turn to President Trump’s prime-time address Wednesday evening for concrete details on the Iran drawdown timeline. If the rhetoric translates into a credible ceasefire framework, energy prices could face further downside pressure — a double-edged sword that would ease inflation concerns but weigh on oil-sector earnings. On the technical side, the S&P 500 is approaching its 200-day moving average near 6,640, a level that has acted as stiff resistance in recent weeks. Investors will also be digesting the implications of SpaceX’s confidential IPO filing — potentially the largest public offering in history — with a reported valuation target north of $1.5 trillion and an unusual plan to allocate 20% of shares directly to retail investors. Friday’s March jobs report looms as the next major data point that could set the tone for the rest of the week.