U.S. stocks rise for second straight day, 'fear index' below 25 for first time in a week

The major U.S. equity indices rose for the second day in a row on April 1, albeit at a slower pace than the day before. Oil prices declined by about 3%. Investors' hopes that the war in the Middle East is nearing an end have strengthened. US President Donald Trump said Iran has requested a ceasefire from the US. According to Politico, Trump is preparing to announce the winding down of the war in an address to the nation scheduled for 3:00 a.m. CET on April 2.

- The broad market index S&P 500 rose by 0.72% at the end of trading on April 1.

- The blue-chip index Dow Jones Industrial Average added 0.48%.

- The Nasdaq Composite Technology Sector Index rose 1.16%.

- The Russell 2000 index of small and mid-capitalization companies rose 0.7%.

- The CBOE Volatility Index (VIX), called the "Wall Street Fear Index," ended the day below 25 points, losing nearly 3%. 20 points is considered a psychologically important mark indicating high volatility.

- Brent crude oil contracts for delivery in June were down 3% to $100.8 per barrel. May futures for WTI were down 2% to $99.4 per barrel.

- Gold rose in price for the second day in a row, adding 2% on the day to reach about $4765 per troy ounce.

- Bitcoin was virtually unchanged in value at around $68,000, CoinGecko shows.

US President Donald Trump said on Wednesday that "the head of the new regime in Iran" has asked the US for a ceasefire. However, Washington will consider the proposal when the Strait of Hormuz becomes "open, free and safe," Trump added. Iran's Foreign Ministry, however, called the claim of a truce request "false and groundless," Bloomberg reported, citing Iranian state television. The Strait of Hormuz connects the Persian Gulf to the open sea and plays a key role in the global supply of oil, gas and fertilizer.

Investors will get additional signals about the further development of the US-Iran war on Wednesday at 21:00 US Eastern Time (03:00 CET on April 2), when Trump will address the nation, CNBC writes. The US president will announce a gradual end to the conflict and the achievement of all military objectives, six sources told Politico. The issue of resuming navigation in the Strait of Hormuz Trump plans to put the issue on NATO allies, Politico added. Futures on the S&P 500, Dow Jones and Nasdaq 100 rose 0.5-1.2 percent after the close of major trading.

U.S. shares of the tourism sector reacted positively to the news about the possible end of the conflict, while the securities of energy companies were declining. Shares of Nike collapsed by 15.5% after a weak forecast. Shares of gold miners including AngloGold Ashanti and Newmont rose.

Gold and silver rose to their highest levels in two weeks on Wednesday, while the dollar and U.S. Treasury yields declined, MarketWatch writes, citing Dow Jones Market Data.

- "It's almost as if the market is picking up that there's probably going to be some resolution in the next couple weeks," Patrick Ryan, chief investment strategist at Madison Investments, told CNBC. However, the worst may not yet be over for the market, he notes. Unless there is "some unambiguous signal that the danger has passed," trading will "remain volatile" in the short term, Ryan said.

- "The market's sharp rebound over the past two days could mean either that the smart money is betting on de-escalation in the Middle East or that mild desperation is causing fear of missing out on a market recovery," Michael Bailey, director of research at management firm FBB Capital Partners, said in a conversation with Bloomberg. However, he added, "any mixed or bad news at these higher levels could turn the market down again."

- "The sharp rise in stocks over the past 24 hours shows how quickly a resolution to the conflict - or even hopes for one - can push markets up," Ulrike Hoffmann-Burchardy, investment director for the Americas and global head of equities at UBS Global Wealth Management, told Bloomberg. - "We continue to believe that global equity markets will be above current levels by the end of the year.

- "The sea of green in the stock market is a classic sign of a market starved for good news, clinging to the slightest reason for hope. But traders should look not at the headlines but at oil prices as a key indicator of what the global economy is facing," emphasized Bloomberg Intelligence macro strategist Ven Ram.

This article was AI-translated and verified by a human editor