Wall Street Soars After Trump Delays Iran Attack
Major US stock indexes rallied broadly on Monday (March 23) after President Donald Trump said he ordered the military to delay attacks on Iranian power plants following “productive talks” with Tehran. The statement sparked a swift recovery in risk assets after markets were previously depressed by threats of attacks on Israel and Iran’s power grids.
However, Iran denied the claim. The Iranian Foreign Ministry stated that there were no talks with the US and that their conditions for ending the war had not changed. A source said Israeli officials believed the US and Iran still had a chance to hold talks this week, keeping markets sensitive to diplomatic headlines.
The recovery spread to global markets: the STOXX 600 in Europe and precious metals edged higher, while oil prices fell, signaling improved risk appetite. The turnaround in oil was key because it eased concerns about energy inflation that had previously prompted a more hawkish repricing of interest rates.
Interest rate markets also adjusted. Investors trimmed bets on a Fed rate hike, with CME FedWatch pricing for a December scenario changing significantly—the probability previously above 50% dropped to around 24%. Last week, the market shifted expectations to no further easing in 2026 after the Fed adopted a hawkish tone, projecting higher inflation and only one rate cut this year.
At 11:43 a.m. ET, the Dow Jones Industrial Average rose 888.09 points (+1.95%) to 46,465.56, the S&P 500 gained 108.40 points (+1.67%) to 6,614.88, and the Nasdaq Composite added 399.63 points (+1.85%) to 22,047.64. All three indexes were on track for their biggest daily gains since February 6.
Source: Newsmaker.id
