CNBC Daily Open: Markets rally as Trump hints Iran war could end soon

Hi, this is Dylan Butts writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

Global markets weighed down by the US-Iran conflict continued on Tuesday, as Wall Street rallied on renewed hope that the conflict may be heading for a resolution.

That hope was boosted by an announcement from the White House that President Donald Trump will give a speech “to the public to provide important information on Iran” at 9pm ET Wednesday.

But, we’ve been here before: Optimism builds, markets rally, but then reality intervenes. Can this recent positive sentiment last, or are we headed for more drops?

A wave of reports on Tuesday suggested that Washington and Tehran may be exploring ways to end their conflict, including an unconfirmed report that Iranian President Masoud Pezeshkian is open to ending the war if assurances are given.

The Wall Street Journal reports that Trump has told aides that he intends to end military hostilities in the Middle East even if the Strait of Hormuz remains largely closed. The President later told the New York Post that he believed the war would end soon, and that the conflict would be opened “in a special way” after the US withdrawal.

Markets performed strongly on Tuesday. The three major US indexes posted their best day since May, with the Dow jumping more than 1,100 points. The S&P 500 gained 2.91% to end at 6,528.52, and the Nasdaq Composite added 3.83% to 21,590.63.

After markets closed, Trump said he expected US military forces to leave Iran “in two or three weeks.” The US is building up forces in the Middle East for possible action against Iran, although no moves have been made at this time.

Hours later, the White House said Trump would give an address “to the nation to provide important information on Iran” at 9pm ET Wednesday.

On Tuesday, Trump also criticized Western allies including France and the UK, warning that the US “will no longer be there to help you” after they refused to join forces against Iran and help open the Strait of Hormuz.

The partial closure of the strait has affected global supply chains, particularly oil, since the war began. Brent crude prices remained high after Iran hit a Kuwaiti oil tanker in waters near Dubai.

While oil continues to dominate the market headlines related to wr this week, we have also seen notable recent changes in technology stocks, especially artificial intelligence.

OpenAI on Tuesday announced that it has closed a record-breaking round of financing that values ​​the company at $852 billion in recent cash, up $122 billion from the $110 billion it announced in February.

Meanwhile, CNBC has confirmed that Oracle has begun to tell employees that it will cut thousands of jobs, as the software maker struggles with lower costs associated with heavy use of AI infrastructure.

– Dylan Butts

Jim Cramer: Three ways the stock market will change if the US-Iran war ends

Want to know how the market will react when the US-Iran war ends? CNBC’s Jim Cramer said Tuesday’s session gives investors an answer.

The host of “Mad Money” said that the market “gave a hand” during Tuesday’s trading session as stocks finally eased and rates fell.

“Today we saw what happens when you give peace a chance,” Cramer said. “Maybe this conversation with Iran is actually nothing more than an exchange of messages. Maybe it has no meaning. So, think about today’s drought that will happen at the end of the war.”

— Morgan Chittum