Hopes for Back-Channel Contacts as International Oil Prices Take a Breather [U.S.–Iran War]

The New York Stock Exchange (NYSE) bounced back on the 4th (local time), recovering after a one-day decline.
The previous day, concerns that the war with the Islamic Republic of Iran could drag on and a surge in oil prices had pushed stocks lower. As international oil prices paused for breath, the market turned higher. Reports of back-channel contacts between the United States and the Islamic Republic of Iran and stronger-than-expected economic data also supported the rebound. In addition, hopes that the war might end sooner than expected helped revive some demand for safe-haven assets.
Stocks that had recently suffered steep losses, such as Micron Technology, led the gains. Shares of High Bandwidth Memory (HBM) supplier Micron Technology jumped 5.6%, and other artificial intelligence (AI) technology names also drove the upward trend.
The Dow Jones Industrial Average (DJIA), which tracks 30 large blue-chip stocks, rose 238.14 points, or 0.49%, to close at 48,739.41. The Russell 2000 Index, composed of 2,000 small-cap stocks, added 27.66 points (1.06%) to finish at 2,636.01. The gains were even more pronounced in the tech-heavy Standard & Poor's 500 Index (S&P 500) and Nasdaq Stock Market (NASDAQ).
The S&P 500 Index, a broad gauge of overall market conditions, climbed 52.87 points (0.78%) to 6,869.50. The Nasdaq, dominated by technology stocks, jumped 290.79 points (1.29%) to 22,807.48. Investor anxiety also eased. The Cboe Volatility Index (VIX), often called Wall Street's "fear gauge," plunged 2.42 points (10.27%) to 21.15.
The New York Times (NYT) reported that Iranian intelligence authorities had used a third country to propose negotiations to the Central Intelligence Agency (CIA) aimed at ending the conflict. A sharp increase in U.S. private-sector employment, far exceeding market expectations, further fueled the rally. In February, private payrolls in the United States grew by 63,000 from the previous month, the largest increase since July 2025.
International oil prices, which had spiked, also took a breather that day. Major technology stocks led the advance. Nvidia Corporation gained $2.99 (1.66%) to close at $183.04, while Microsoft (MS) added $1.27 (0.31%) to finish at $405.20. Amazon surged $8.09 (3.88%) to $216.82, and Tesla, Inc. jumped $13.51 (3.44%) to end the session at $405.94.
pjw@fnnews.com Park Jong-won Reporter