S&P 500 surges 2.9% to its biggest gain since last spring as hopes build for an end to Iran war

    The global markets have always been very sensitive to conflict, and in the past few weeks, we have seen how the war between Iran and the U.S. has affected these markets. All of the major stock markets have been down, oil prices have been hitting highs we haven't seen in years, and interest rates are jumping. At the center of everything is oil. The Strait of Hormuz has been disrupted due to uncertainty about whether it's safe, and this caused a huge spike in oil prices. The Strait of Hormuz is a huge area for oil to pass through. The rise in oil prices has fueled fears of inflation and an economic breakdown. 

    But as we know, markets are forward-looking, not backward. The markets react less to what is happening and more to what might happen. When talks of U.S. leaders being open to ending the conflict in Iran, the stock market immediately rallied. The S&P 500 jumped 2.9% in a single day, being one of the largest jumps since last year. Oil prices dropped, easing the fear of inflation for consumers and businesses.

    These statements and events in the world have shown how markets are trying to price in the uncertain future with any bit of information that comes out. While this rally today was huge, the markets are still down on the year, and the war has not been declared over. There is still uncertainty in the air, but this could be the first logical step to recovering the losses.

https://apnews.com/article/stock-markets-war-oil-trump-iran-84a7c46b51b3583f743c8da6a40d36ac