Wall St recovers after Trump postpones strikes on Iran's power plants

By Purvi Agarwal and Twesha Dikshit

Mar 23 (Reuters) - The main U.S. indexes climbed successful wide gains connected Monday aft President Donald Trump said helium had ordered the subject to postpone strikes against Iranian powerfulness plants pursuing "productive conversations" with Tehran.

Iran's ‌foreign ministry refuted the claim, with a spokesperson saying they had held nary discussions with the United States and that ‌their conditions to extremity the warfare had not changed. A root told Reuters Israeli officials believed the U.S. and Iran could clasp talks this week.

Global markets staged a crisp ​recovery aft Trump's comments, with Europe's STOXX 600 and precious metals edging up portion lipid prices fell, signaling improving hazard appetite. They had been trading little aft threats of attacks connected Israeli and Iranian powerfulness networks.

"It (the comments) buys time. We are successful a precise aggravated conflict... possibly they request immoderate much clip to hole immoderate they're staging to do. I don't spot this struggle going backmost successful the vessel overnight," said David Bianco, Americas ‌chief concern serviceman astatine DWS.

Investors trimmed bets connected ⁠interest-rate hikes from the U.S. Federal Reserve pursuing Trump's comments, which present basal astatine 24% for a chopped successful December, compared with much than 50% earlier, according to CME Group's FedWatch.

Markets had scaled backmost bets past ⁠week to amusement nary easing was expected successful 2026 aft the cardinal slope struck a hawkish tone, projecting higher ostentation and a azygous simplification this year.

"The Fed is stuck wherever they are for a portion longer. Conflict is inflationary, but you don't hike erstwhile your country's successful the mediate of a ​deep, ​escalating conflict," said Bianco.

At 11:43 a.m. ET, the Dow Jones Industrial Average roseate ​888.09 points, oregon 1.95%, to 46,465.56, the S&P 500 ‌added 108.40 points, oregon 1.67%, to 6,614.88, and the Nasdaq Composite gained 399.63 points, oregon 1.85%, to 22,047.64.

All 3 indexes were acceptable for their biggest single-day jumps since February 6.

The Russell 2000 gained 2.9%. The small-cap index, delicate to higher involvement rates, connected Friday ended much than 10% beneath its grounds adjacent of January 22, confirming it had been successful correction territory.

The CBOE Volatility Index, Wall Street's fearfulness gauge - retreated aft earlier hitting its highest level successful 2 weeks - and was past down 1.82 points astatine 24.96.

Oil prices fell by much than 10%, but ‌energy stocks were mixed. The vigor scale was up 0.6%, successful enactment with broader ​markets.

Airlines jumped, with American Airlines and United Airlines adding much than 5% each. ​Cruise vessel operators soared, with Carnival Corp, Norwegian Cruise Lines and ​Viking Holdings each gaining much than 7%.