Dow rallies 900 points as optimism grows for an end to the Iran war

Stocks rose on Tuesday following new reports giving investors hope that the U.S.-Iran war could soon come to an end.

The Dow Jones Industrial Average was up 979 points, or 2.2%. The index had briefly surged above 1,100 points during the session after an unconfirmed report said Iranian President Masoud Pezeshkian was open to ending the war with guarantees. The S&P 500 gained 2.6%, and the Nasdaq Composite advanced 3.6%.

To be sure, Pezeshkian made similar remarks earlier this month, saying in a post on X that the "only way to end this war — ignited by the Zionist regime & US — is recognizing Iran's legitimate rights, payment of reparations, and firm int'l guarantees against future aggression."

The Wall Street Journal reported that President Donald Trump had told aides he was willing to end military hostilities in the Middle East even if the Strait of Hormuz remained largely shut. The New York Post later reported the president said he believes the Iran war will likely end soon, with other nations taking the lead in reopening the Strait of Hormuz.

Technology, which has been under pressure since the conflict began, rose broadly. The Technology Select Sector SPDR Fund  traded almost 2% higher. Nvidia climbed more than 3%, and Microsoft advanced more than 1%.