NEW YORK (AP).— The main indices of the New York Stock Exchange recorded strong gains this Tuesday, driven by expectations of a possible end to the conflict between the United States and Iran, which momentarily reduced uncertainty in international financial markets.
The S&P 500 index advanced 2.9%, its best performance since May, while the Dow Jones Industrial Average rose 2.5% and the Nasdaq composite rose 3.8%, in a day marked by optimism after recent days of declines.
Just one day earlier, the S&P 500 was more than 9% below its all-time high reached at the beginning of the year, due to concerns about the prolongation of the conflict in the Middle East and its possible global economic effects.
The stock market rise coincided with the close of the first quarter of the year, a period in which an increase in operations is common due to portfolio adjustments by fund managers.
The initial push was attributed to media reports that US President Donald Trump would be willing to end the military campaign against Iran, even if restrictions persist in the Strait of Hormuz.
This sea route is strategic for global energy trade, since approximately one fifth of the oil consumed daily globally passes through it.
Subsequently, oil prices recorded a significant drop following statements by Iranian President Masoud Pezeshkian, who expressed his country’s willingness to end the conflict under certain conditions.
Among Iran’s requirements are guarantees to avoid future aggression, which was interpreted by the markets as a possible path towards de-escalation of the conflict.
The price of Brent crude oil fell 3.2% to close at $103.97 per barrel, while US crude oil fell 1.5% to $101.38.
However, risks persist for global energy supply, especially after reports of attacks on oil tankers in the Persian Gulf, which keeps price volatility latent.
The previous rise in oil prices has already had an effect on international inflation, with Europe recording an increase to 2.5% in March, compared to 1.9% the previous month.
In the United States, the price of gasoline exceeded $4 per gallon for the first time since 2022, affecting household purchasing power and limiting spending in other sectors.
At the corporate level, companies linked to transportation and energy consumption registered advances, such as United Airlines, which rose 8.1%, and Norwegian Cruise Line Holdings, with an increase of 5.9%.
The technology sector also boosted the market, highlighting Marvell Technology, which advanced 12.8% after an investment announced by Nvidia, which in turn rose 5.6% and was one of the main drivers of the S&P 500.
Stock market reaction
Markets react to signs of de-escalation and quarterly financial adjustment.
Investor optimism
Investor optimism arises after reports of a possible end to the conflict, greatly reducing global uncertainty, driving purchases of shares in risk-sensitive sectors, while managers adjust portfolios at the quarterly close with greater relative confidence.
Oil and inflation
For all this, oil prices are falling due to expectations of agreement, alleviating inflationary pressures and energy costs, although risks persist due to tensions on key routes, affecting consumers, companies and monetary policy decisions in the short term.
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