4:20pm: Markets eye potential off-ramp in Iran conflict
US stocks closed higher Wednesday, buoyed by hopes for a potential diplomatic off-ramp in the Iran conflict.
The Nasdaq led the way with a 1.2% gain, adding 250 points to finish at 21,841. The S&P 500 rose 0.7% to 6,575, while the Dow Jones climbed 224 points, or 0.5%, to 46,566. Small-cap stocks followed suit, with the Russell 2000 up 16 points, or 0.6%, to 2,512.
Investors reacted to comments from Iranian President Masoud Pezeshkian suggesting Tehran could deescalate under certain conditions, saying Iran has "the necessary will to end this war."
US President Trump also indicated the conflict could wrap up soon, noting US involvement might end "within two weeks, maybe two weeks, maybe three."
Markets now turn their attention to Trump’s upcoming address to the nation Wednesday at 9 p.m. ET for further clarity on the situation in Iran.
3:40pm: Proactive news headlines
- Purepoint Uranium Group Inc (TSX-V:PTU, OTCQX:PTUUF, FRA:P5X0) is advancing its core uranium assets in Canada’s Athabasca Basin through long-term joint venture partnerships.
- New Era Energy & Digital (NASDAQ:NUAI) signed a non-binding LOI to form a joint venture to develop and finance its Texas Critical Data Centers campus.
- Tiziana Life Sciences Ltd (NASDAQ:TLSA) presented preclinical data suggesting its intranasal foralumab therapy could address neuroinflammation linked to aging.
- Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) earned Verified Graphene Producer certification, validating both its material and production process.
- Bit Digital Inc (NASDAQ:BTBT) expanded its Ethereum-focused treasury operations and AI infrastructure while posting revenue growth in 2025.
- Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX) shifted from crypto mining to AI infrastructure, reporting strong balance sheet growth and zero debt for 2025.
- Medicus Pharma (NASDAQ:MDCX) Phase 2 SkinJect study for basal cell carcinoma showed meaningful activity, supporting progression toward registrational development.
- Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) boosted firm natural gas sales under an amended long-term agreement with Bahiagás, supporting higher expected production.
- NanoViricides (NYSE-A:NNVC) plans to start a Phase II trial of NV-387 for mpox in the DRC, with site preparations underway.
- Algernon Health (CSE:AGN, OTCQB:AGNPF, FRA:AGW0) will rebrand as Grey Matters Health to reflect a strategic focus on brain health and Alzheimer’s diagnostics.
- 374Water Inc (NASDAQ:SCWO, FRA:8LL) is scaling its AirSCWO waste destruction technology and expanding commercial deployments under new leadership.
- Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) successfully drilled and brought online a new well at its Mateguafa Attic field in Colombia, boosting production.
2:30pm: Market movers
- Eli Lilly and Co (NYSE:LLY) shares rose over 5% after the U.S. Food and Drug Administration approved its obesity drug Foundayo, marking its second approval in the category.
- Beyond Meat Inc (NASDAQ:BYND) shares dropped 13% after reporting a wider-than-expected quarterly loss.
- RH shares fell nearly 23% after missing fourth-quarter earnings and revenue expectations despite modest year-over-year sales growth.
- Nike Inc (NYSE:NKE, XETRA:NKE) shares declined more than 14% after flat quarterly revenue and weaker-than-expected forward guidance.
- New Era Energy & Digital (NASDAQ:NUAI) signed a non-binding deal to form a joint venture to develop and finance a Texas data center campus.
- Tiziana Life Sciences Ltd (NASDAQ:TLSA) reported preclinical data suggesting its intranasal therapy could help address age-related neuroinflammation.
- Bit Digital Inc (NASDAQ:BTBT) reported modest revenue growth in 2025 while advancing its shift toward Ethereum treasury operations and AI infrastructure.
- Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX) posted strong balance sheet growth and pivoted from crypto mining to AI infrastructure, with sharply higher cash and assets.
1:10pm: SpaceX files for IPO
SpaceX has reportedly submitted a confidential filing for an initial public offering (IPO), according to a Bloomberg News report.
The filing, which could take place as soon as March 2026, would allow the company to share draft registration materials with regulators privately before making them public.
Earlier reporting from Bloomberg has suggested the offering could raise up to $75 billion, though these details are not yet confirmed.
SpaceX has not publicly confirmed the filing.
12:05pm: Jobs surprise
US private sector employment increased by 62,000 in March, according to ADP, exceeding economists’ estimate of 40,000.
“A cooling labor market eases wage pressure, giving policymakers room to stay patient and potentially cut rates later this year," economist Gina Bolvin noted.
Bolvin, President of Bolvin Wealth Management Group, added that while hiring slowed in most industries, the tech sector continued to show strength, supporting earnings growth for the S&P 500.
10:55am: Markets on the move
Global markets are on the move, rallying on hopes that tensions with Iran could ease sooner than many had feared.
Nigel Green, CEO of deVere Group, points out that this optimism is fueling a fast-paced repricing, as traders adjust to the possibility of calmer geopolitical waters.
“Markets are, effectively, now trading a two or three week war scenario based on Trump’s latest comments," Green said.
“The market reaction is now feeding directly into pricing across equities, oil and currencies.
“Markets are pricing de-escalation faster than diplomacy can deliver. Financial markets move in probabilities, not confirmed outcomes, and right now the probability of a shorter conflict is being aggressively priced in.”
10am: Nasdaq up 0.9% at the open
US stocks have opened higher, extending the rally from overnight, as Donald Trump said Iran’s new president asked for a ceasefire.
The Nasdaq is up 0.9%, while both Dow Jones and S&P 500 are up 0.5%.
Chip stocks are the main engine for the Nasdaq with Western Digital, Micron, Marvell and AMD all higher as the sector rebounds strongly.
The rally is broadening out to tech more widely, with Alphabet, ARM and Applied Materials advancing alongside infrastructure and industrial names like Axon and Ferrovial.
Trump posted that "Iran’s new regime president, much less radicalized and far more intelligent than his predecessors, has just asked the United States of America for a casefire! We will consider when Hormuz Strait is open, free, and clear. Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!"
7.40am: Rally to be extended as oil falls
US stocks are set to extend their rally on Wednesday on hopes of an end to the war in the Middle East.
Nasdaq futures were pointing to a 0.9% gain, with Dow Jones and S&P 500 futures up 0.7%.
Stocks had rallied sharply the previous day after encouraging comments from Washington and Tehran on a potential end to the war in the Middle East.
The Nasdaq surged 3.8% to close at 21,591, the S&P 500 rose 2.9% to 6,529 and the Dow Jones jumped 1,125 points or 2.5% to 46,342. Small caps joined in, with the Russell 2000 climbing 3.4% to 2,496.
It was the S&P's best day since last May. March was still the worst monthly performance since 2022, with the three major benchmarks all shedding more than 5%, which would have been over 7% as the indexes were trading at a near eight-month lows before the strong rally in the latter part of the session.
It came on the back of Iran’s state news agency reporting that Iranian President Pezeshkian said Iran is willing to end the war but only if there are guarantees “to prevent the recurrence of aggression”.
That saw President Trump say last night that he foresees ending the war "within two weeks, maybe three" but suggested that "we’re not going to have anything to do with" what happens in the Strait of Hormuz, adding to other recent comments that the US does not see reopening Hormuz as necessary to end the war.
Oil markets saw some relief, with WTI crude dropping to below $98 in the early hours, but edging back up on uncertain prospects for the Strait of Hormuz.
There were reports of comments from Iran’s parliament that the Strait "will not open" and a denial that there had been any negotiations, "and we will not hold them", while elsewhere it was said that UAE is preparing to help allies open the watrerway through force.
Bond yields fell, with the 10-year US Treasury dropping to levels last seen two weeks ago, while gold climbed back above $4,700 an ounce, from around $4,500 late on Monday.
Market analyst David Morrison at Trade Nation said: "There’s no doubt that yesterday’s rebound has been impressive and helped along by a pullback in oil prices. But the situation is muddied due to end of quarter position-squaring.
"It’s also challenging to express just what investors are pricing in, and what they’re not. For a start, investors are obviously desperate to add to their exposure at lower levels, calculating that hostilities are effectively over.
"They don’t believe there will be US military boots on the ground, and any attempt to seize Kharg Island is now unlikely.
"But this could be a miscalculation, and the war may take longer to conclude than many are currently forecasting. In addition, investors may not be factoring in the economic damage already done," he said, with Gulf energy infrastructure damaged, production halted and likely to take time to restart, with shipping lanes still closed.
Today brings earnings updates from Conagra Brands, Lamb Weston and Cal-Maine Foods, as well as economic releases including retail sales, the ADP employment change and the ISM manufacturing PMI.