The three major U.S. stock indexes in New York ended higher across the board. Even as the United States deployed more than 15 warships to the Strait of Hormuz for a strong blockade operation, growing expectations of a U.S.-Iran agreement appeared to lift investor sentiment.
On the 13th (local time), the Dow Jones Industrial Average closed up 0.63% at 48,218.25. The Standard & Poor's (S&P 500) index rose 1.02% to 6,886.24, and the Nasdaq composite ended up 1.23% at 23,183.74. In particular, the S&P 500 recovered all of its losses since the outbreak of the Iran war and neared the record high set at the start of the year.
The market opened lower but reversed course on comments by President Donald Trump. Meeting with reporters at the White House, Trump said, "We received a message from the Iranian side," and added, "They are very eager to reach an agreement." Iran did not officially confirm the remarks. CNBC said, "Investors expect the United States and Iran will ultimately reach a deal, lifting New York stocks." Earlier, the two countries held cease-fire talks in Islamabad, Pakistan, but they broke down, and tensions remain as the United States has moved to blockade the Strait of Hormuz.
Earnings season also supported investor sentiment. Starting with Goldman Sachs on the day, major financial firms such as Citigroup and JPMorgan Chase, as well as Netflix and Johnson & Johnson, are set to release results.
International oil prices rose. On the London ICE Futures Exchange, Brent crude climbed to around $99 per barrel, and West Texas Intermediate also traded in the $99 range. It briefly topped $100 during the session, but gains narrowed somewhat as hopes for talks were priced in.
The market views the recent trend as a "rally amid anxiety." Steve Sosnick of Interactive Brokers said, "Even with inflation worries, the market rebounded quickly, which has surprised investors," adding, "Investors are buying so as not to miss the uptrend." Mark Luschini of Janney Montgomery Scott also said, "With negotiations breaking down and restarting repeatedly, the market is becoming increasingly desensitized."