US stocks rallied after Iranian President Pezeshkian signaled he was open to ending the conflict with the US, Israel, and Gulf Cooperation Council (GCC) members under certain conditions. The S&P 500 and Nasdaq 100 each climbed nearly 3%, while the Dow Jones Industrial Average jumped about 1,000 points.
The shift in tone from Tehran aligns with Washington’s efforts to de-escalate tensions following President Trump’s suspension of military strikes. The goal is to restore tanker traffic through the Strait of Hormuz and curb the surge in energy prices. Despite the diplomatic progress, benchmark crude oil and refined product prices are still expected to spike in March, reflecting the earlier halt in trade through the key chokepoint and the damage to energy infrastructure—developments that had fueled expectations of a more hawkish Federal Reserve.
Risk-sensitive technology stocks, which lagged in the prior session, rebounded sharply. Meta rose 3%, while Microsoft, Nvidia, and Amazon each advanced as much as 5%. In corporate news, Eli Lilly gained 3% after announcing a $7.8 billion acquisition of Centessa. By contrast, McCormick fell 7% following news of its tie-up with Unilever’s food division.
