Stock market today: Dow S&P 500, Nasdaq climb as deescalation talk in Iran extends rally

US stocks moved further into the green on Wednesday following a rally on Tuesday to end the first quarter as investors digested signals from Washington and Tehran that the two nations may be willing to find an end to the war that has ravaged the markets.

The S&P 500 (^GSPC) picked 0.6% to start the session, while the Nasdaq Composite (^IXIC) and Dow Jones Industrial Average (^DJI) gained 0.7% and 0.8%, respectively

In comments on Tuesday reported by regional media, Iranian President Masoud Pezeshkian said Iran has “the necessary will to end this war” under certain conditions. In Washington, President Trump said he sees US involvement wrapping up “within two weeks, maybe two weeks, maybe three.”

Brent crude (BZ=F) lost roughly 1.2% to trade near $103 per barrel after deeper losses earlier in the session, while US benchmark West Texas Intermediate crude (CL=F) dropped to trade below $100 per barrel before rebounding above that line

On the economic calendar, ADP data showed private employers added 62,000 jobs in March, and the US retail sales rose by 0.6% month over month, both exceeding expectations.

Oil prices pulled back Wednesday morning after a bevy of headlines suggesting Iran and the US may both be looking for an end to the war that has now dragged on into its fifth week.

Futures on Brent crude (BZ=F), the international pricing benchmark, shed roughly 2.2% to trade around $101.70 per barrel. Those on US benchmark West Texas Intermediate (WTI) crude (CL=F) turned down by a similar 2.1% to sit around $99.30 per barrel, pulling back below the key $100 level.

Kicking off the pullback in oil — and a matching surge in global equity markets — were comments from Iranian president Masoud Pezeshkian, first reported in regional media on Tuesday. On a call with the EU Council president, Pezeshkian said Iran has “the necessary will to end this war” but expects certain guarantees in exchange.

In Washington, President Trump said on Tuesday in comments to reporters that the US would end its involvement in the war in Iran “within two weeks, maybe two weeks, maybe three.”

That said, analysts caution that while oil has pulled back, the risk premium embedded in current prices has not yet abated. President Trump has said the US may withdraw without resolving the conflict over the Strait of Hormuz, leaving control of the world’s most critical energy chokepoint an open question.

In a Truth Social post on Wednesday morning, President Trump said any ceasefire negotiations are conditioned on a reopening of the strait.

“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 CEASEFIRE! 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!!!” the president wrote.

An end to conflict will also not immediately fix the longer-term effects of infrastructure damage, wellhead shut-ins, insurance premiums, and other components of the war.

US retail sales rose 0.6% from the prior month in February, a jump after January showed a decline in sales and a rise that topped Wall Street forecasts.

Wall Street economists expected retail sales rose 0.5% last month, according to Bloomberg data. In the year’s first month, sales fell 0.1%. Compared to a year ago, retail sales rose 3.7% in February.

Excluding autos, retail sales grew by 0.5% on the month, coming in hotter than the previous month’s 0.0% reading and expectations of a 0.3% uptick. The same measure grew by 3.6% year-on-year.

Notably, gasoline sales dropped 0.7% year-on-year in the final month before the effects of the war in Iran will likely begin to show up in the data. The war began with US and Israeli airstrikes against Iran on Feb. 28.

Private payrolls fell slightly month over month in March but strongly outperformed expectations, according to a release from data provider ADP.

The private sector added 62,000 jobs in March, according to ADP, slightly below February’s 66,000. Economists had been looking for 40,000 jobs added, roughly a third lower.

Goods-producing sectors added 30,000 jobs on the month, with strong gains in construction offsetting the 11,000-job loss in manufacturing.

Service-providing sectors added 32,000 jobs. A monthly loss of 58,000 jobs in the “trade/transportation/utilities” sectors was counterbalanced by an equal number of jobs gained in education and healthcare, alongside smaller adds in other sectors.

Year-on-year pay changes for people who stay at their jobs remained steady at a 4.5% increase for the third month in a row, while pay changes for job-changers rose to a 6.6% gain.

“Overall hiring is steady, but job growth continues to favor certain industries, including health care,” Nela Richardson, chief economist at ADP, said.

RH (RH) stock sank 19% before the bell on Wednesday after the luxury furniture retailer’s earnings fell short of analysts’ expectations.

Investing.com reports:

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Nike stock fell 9% before the bell on Wednesday, despite beating analysts’ estimates, the sportswear company said recovery efforts in China dragged on the quarter.

Yahoo Finance’s senior reports Brooke DiPalma reports:

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Bloomberg News reports:

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