US STOCKS-Wall Street set for higher open as Iran war resolution hopes buoy sentiment
By Purvi Agarwal and Twesha Dikshit
April 1 (Reuters) - Wall Street's main indexes were set for a higher open on Wednesday, after posting their biggest one-day gain in nearly a year, following President Donald Trump's comments that suggested an end to the Middle East conflict could be close.
Trump and Secretary of State Marco Rubio said on Tuesday the end of the Iran war could be near, signaling potential for both direct talks with Iranian leadership and a winding down of the conflict without a deal. Trump is scheduled to address the country at 9 p.m. ET.
Global markets rallied, with Europe's STOXX 600 .STOXX up more than 2%, as markets hoped for a restoration of shipping through the Strait of Hormuz, one of the world's key oil transit chokepoints.
Oil prices, which had surged since the war erupted in late February, fell as much as 3% on Wednesday. U.S. energy stocks slipped in premarket trading, with Exxon Mobil XOM.N and Chevron CVX.N down 3.1% and 2.2%, respectively.
Robert Pavlik, senior portfolio manager at Dakota Wealth, said the comments by the presidents of the U.S. and Iran seemed to be in the right direction, pointing to an end to the war.
"That's huge if it alleviates some of the worries and concerns that have been hanging over the market for the past month," said Pavlik.
At 08:40 a.m. ET, Dow E-minis YMcv1 were up 239 points, or 0.51%, S&P 500 E-minis EScv1 were up 38.25 points, or 0.58%, and Nasdaq 100 E-minis NQcv1 were up 203 points, or 0.85%.
The CBOE Volatility Index .VIX, known as Wall Street's fear gauge, slipped to an over one-week low and was last down 0.52 points at 24.72.
Despite Tuesday's rally, the S&P 500 and the Nasdaq posted their steepest monthly declines in a year, while the Dow logged its sharpest drop since September 2022.
Private payrolls increased steadily in March, the ADP's national employment report showed, while a Commerce Department report showed retail sales in February rose 0.6%, compared with an expected 0.5% rise.
Domestic private payroll figures for March will be in focus on Friday, although U.S. markets will be closed for the Good Friday holiday.
Money market participants had priced out any easing from the U.S. Federal Reserve this year after the war outbreak stoked energy-driven inflation fears, clouding the outlook for interest rate cuts. They had previously expected two reductions.
Comments from Federal Reserve policymakers Alberto Musalem and Michael Barr will be tracked for any clues on the monetary policy path.
In early movers, Nike NKE.N slumped 11.3% after the sportswear giant forecast a surprise drop in its fourth-quarter sales.
Shares of RH RH.N slid 22.1% after the luxury furniture retailer forecast annual revenue growth below estimates and missed expectations for fourth-quarter revenue.
Shares of nCino NCNO.O jumped 21.3% after the banking software provider forecast first-quarter revenue above estimates and announced an accelerated $100 million share repurchase program.
