Wall Street Edges Toward Record High as Oil Prices Ease

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U.S. stocks rallied to the edge of their all-time high and crude oil prices eased as hopes climbed that the United States and Iran may try again on talks to end their war. The S&P 500 rose 1.2%, bringing the index within 0.2% of its record set in January. The Dow gained 0.7%, and the Nasdaq composite climbed 2%. If talks succeed and the war ends up being only a temporary setback for the global economy, investors can turn their attention back to the rising profits for companies that had markets worldwide doing well before the fighting began.

Why it matters

The potential for renewed US-Iran talks to end the ongoing war is a significant development, as the conflict has roiled global markets and sent oil prices soaring. A resolution could help stabilize the economy and allow investors to refocus on the underlying strength of corporate earnings and economic growth.

The details

The rally in US stocks came as hopes grew that Pakistan was trying to bring the US and Iran together for more talks to end their war. Such prospects also helped lower the price of oil, which has been disrupted by the fighting. Brent crude oil fell 4.6% to $94.79 per barrel, while US crude dropped 7.9% to $91.28. However, the situation remains volatile, with hopes often quickly turning to doubt since the war began.

• The US and Israel launched attacks on Iran in late February.
• The S&P 500 is now just 0.2% below its record set in January.

What they’re saying

What’s next

If the US and Iran can successfully resume negotiations, the outcome of those talks will be closely watched by financial markets. A resolution to the conflict could help stabilize oil prices and boost investor confidence.