Nasdaq Jumps 1.3%, Dow Rebounds 240 Points as Oil Drops on Iran War Comments

U.S. stocks rebounded sharply Monday afternoon after President Donald Trump signaled the conflict with Iran could soon wind down, easing fears of a prolonged geopolitical crisis that had rattled markets earlier in the day. The Dow Jones Industrial Average closed at 47,740.8, up 240 points, while the S&P 500 rose 55.9 points to 6,795.99 and the Nasdaq Composite climbed 308 points to 22,695.9, powered by a strong recovery in technology shares.

Markets had spent much of the session under pressure as investors reacted to escalating Middle East tensions and a surge in oil prices. But sentiment shifted after Trump told a CBS reporter that the U.S. military campaign had advanced much faster than anticipated.

“I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no Air Force,” Trump said, adding that the U.S. was “very far” ahead of the four-to-five week timeline initially expected for the conflict.

The remarks triggered a rapid reversal across risk assets. Crude oil futures fell to $88.58 a barrel, down $2.32, after earlier surging above $100 as traders priced in the possibility of supply disruptions tied to the conflict.

Equities followed oil lower in volatility. The Dow at one point dropped more than 800 points earlier in the session before paring losses and eventually turning positive in afternoon trading. The technology-heavy Nasdaq led the recovery, jumping more than 1.3% as investors rotated back into growth stocks.

The late-day rally highlighted how closely markets remain tied to geopolitical developments and energy prices. Oil’s pullback helped ease inflation concerns that had briefly resurfaced during the morning’s spike in crude.

Energy stocks lagged the broader market as oil retreated, while technology and consumer discretionary shares led the rebound into the closing bell.

Investors will continue monitoring geopolitical developments in the Middle East, as well as energy markets, for signs of whether tensions are truly easing or could flare again. Any renewed volatility in oil prices could quickly ripple through equities and inflation expectations.