U.S. Stocks Rally on Mideast Ceasefire Hopes
The New York Stock Exchange reflected the upbeat sentiment across the board. The Dow Jones Industrial Average advanced 0.66%, adding 305.43 points to settle at 46,429.49, while the Nasdaq Composite climbed 0.77%, gaining 167.93 points to close at 21,929.83. The S&P 500 rose 0.54%, tacking on 35.53 points to finish at 6,591.90.
Market anxiety visibly eased, with the Volatility Index (VIX) — widely regarded as Wall Street's "fear index" — shedding 6.01% to settle at 25.33.
The rally was underpinned by US President Donald Trump's assertion that the US is "in negotiations" with Iran, which stoked investor hopes that the conflict may be nearing its final stages. White House Spokesperson Karoline Leavitt reinforced the signal, confirming that talks between the two sides were ongoing and noting that the president's preference has always been peace — while cautioning that should Iran refuse to accept military defeat, President Trump would strike Iran harder than ever before.
Iran, however, complicated the optimism, putting forward five conditions for ending the war — among them a demand for control over the Strait of Hormuz — while rejecting the US proposal outright.
Energy markets moved decisively on the ceasefire speculation. Brent crude tumbled 1.7% to $102.76 per barrel as of 2000 GMT, reflecting trader expectations that a diplomatic resolution could ease the supply disruptions that have rattled global oil flows since the conflict erupted.
On the domestic economic front, the US current account deficit contracted sharply by 20.2% to $190.7 billion in the fourth quarter of 2025 — its lowest reading since the first quarter of 2021.
European Markets
Across the Atlantic, European equities mirrored Wall Street's optimism with broad-based gains. The pan-European Stoxx Europe 600 surged 1.42% to close at 587.49 points. The UK's FTSE 100 advanced 1.42% to 10,106.84, while Germany's DAX 40 gained 1.41% to 22,957.08 and France's CAC 40 rose 1.33% to 7,846.55. Italy's FTSE MIB 30 climbed 1.48% to finish at 44,013.29, and Spain's IBEX 35 posted the strongest regional gain at 1.54%, closing at 17,169.90.
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