By Dow Jones Newswires Staff
Oil tumbled and stocks jumped as traders met overnight headlines on the Middle East with optimism.
Brent crude oil briefly fell below $100 a barrel, heralding a surge in equity markets and a rally in U.S. Treasuries. The moves came after President Trump said the U.S. was nearing an exit from the Middle East conflict and Iran's president suggested the country was willing to end the war. Meanwhile, the United Arab Emirates is willing to work with the U.S. and other allies to open the Strait of Hormuz, The Wall Street Journal reported.
U.S. stocks looked set to extend Tuesday's rally, while blue-chip indexes surged in Asia and Europe. Markets will watch an address from Trump later Wednesday in which he will provide an update on the conflict.
Oil prices fell after President Trump said the U.S. would be leaving Iran in two to three weeks with or without a deal. In early trading, the front-month Brent contract for June was down 2.2% to $101.68 a barrel, while WTI futures for May were down 3.8% to $97.57 a barrel. "De-escalation hopes have given markets a lift, but we think the effects of the war would, in many cases, persist even if the war did end soon," said Thomas Mathews from Capital Economics.
--U.S. futures for the S&P 500 were up 0.7% and futures for the Dow Jones Industrial Average climbed 0.6%. Futures for the tech-heavy Nasdaq were 1.1% higher following gains for semiconductor stocks in Asia and Europe.
Nike shares tumbled 9% premarket after the sportswear retailer forecast an unexpected drop in sales.
--Stocks in Asia jumped across the continent. South Korea's Kospi ended its losing streak, surging 8.4%. Japan's Nikkei 225 index climbed 5.2%, and Hong Kong's Hang Seng gained 2.2%. China's benchmark Shanghai Composite was up 1.5%.
Risk sentiment spurred gains in chip stocks, which have been tied to the artificial-intelligence boom. Samsung Electronics rose 10% and SK Hynix gained 11%. Kioxia Holdings jumped 14% in Tokyo, while TSMC added 5.4%.
Energy shipping stocks also advanced, with Cosco Shipping Energy Transportation rising 10% in Hong Kong and China Merchants Energy Shipping gaining 10% in Shanghai.
--European stock indexes jumped at the market open as traders seized on President Trump's comments that the U.S. could soon walk away from Iran. Gains were broad-based, with all but one European sector--energy--in positive territory. The Europe-wide Stoxx 600 rose 2.2%. Energy-sensitive industrial stocks jumped, with Siemens Energy surging 8.1% to help Germany's DAX climb 2.8%.
The Dutch AEX was up 1.65% as semiconductor stocks surged, including a 4.1% gain for ASML. The French CAC 40 was up 2.35% as industrials and banks rallied. London's FTSE 100 rose 1.8%, with falling energy stocks capping the index's gains. Blue-chip indexes in Spain and Italy jumped 2.7% and 2.4%, respectively.
--The dollar fell to a one-week low against a basket of currencies. The drop in oil prices and improved risk sentiment are negative for the dollar because the U.S. is a net oil exporter and the currency is considered a safe haven. The DXY dollar index dropped 0.4% to a low of 99.534.
U.S. Treasury yields declined in Asian trade as hopes emerged that the Middle East conflict could end soon, alleviating investor concerns over both its inflationary and growth impact. Treasury yields fell faster at the short end of the curve than on the long end, suggesting slightly receding inflation concerns due to high oil prices. The two-year Treasury yield fell 3.5 bps to 3.763%, the 10-year yield dropped 2.6 bps to 4.284% and the 30-year yield was down 0.9 bps at 4.883%.
Eurozone government bond yields fell sharply. The 10-year German Bund yield was 7.3 basis points lower at 2.939%; the 10-year Italian BTP yield slid 15 basis points to 3.765% and the 10-year French OAT yield dropped 10.6 basis points to 3.622%.
--Bitcoin market sentiment appeared cautious as seasonal tailwinds failed to materialize, BTC Markets' Rachael Lucas said. Bitcoin traded around $68,000 Wednesday, below the $70,000-$72,000 range needed to build stronger market conviction, Lucas said. Bitcoin was last up 1.2% at $68,981.84.
--Gold prices extended gains, climbing back above $4,700 a troy ounce. In early trading, New York futures rose 1.6% to $4,752.70 an ounce and are on track for a weekly gain of more than 4%. "The move suggests that bullion is beginning to rebuild momentum, although gains remain measured and still closely tied to currency and oil dynamics," analysts at Sucden Financial said.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
April 01, 2026 04:22 ET (08:22 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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