Stocks rise and oil prices ease as Wall Street keeps yo-yoing because of
the war with Iran
[March 26, 2026] By
STAN CHOE
NEW YORK (AP) — Hopes for a possible end to the war with Iran pushed
stocks higher on Wall Street Wednesday, while oil prices eased.
The S&P 500 rose 0.5% in its latest flip - flop after the United States
delivered a plan to pause the war to Iran. The Dow Jones Industrial
Average added 305 points, or 0.7%, and the Nasdaq composite gained 0.8%.
But the moves were shaky, and the S&P 500 briefly came close to erasing
all of its jump, which maxed out at 1.2% during the morning. Financial
markets have swung sharply since the war began more than three weeks
ago, and many of the reversals have struck hour to hour as uncertainty
continues to dominate about how long the war will last.
Keeping up that uncertainty on Wednesday: Iran’s foreign minister, Abbas
Araghchi, said in an interview with Iranian state TV that his government
has not engaged in talks to end the war, “and we do not plan on any
negotiations.”
Iran also launched more attacks on Israel and Gulf Arab countries,
including an assault that sparked a huge fire at Kuwait International
Airport, while coming under attack itself. The U.S. military deployed
paratroopers and more Marines to the region.
Optimism, though, was nevertheless evident in financial markets
worldwide. Stock indexes climbed more than 1% in London, Paris and
Shanghai. Tokyo’s Nikkei 225 leaped 2.9%.
The price for a barrel of Brent crude delivered in June fell 3% to
settle at $97.26. Hopes rose that a cooldown in fighting could allow oil
and natural gas to flow more freely from the Persian Gulf to customers
worldwide. Many oil tankers are currently stuck outside the Strait of
Hormuz off Iran’s coast, and the blockage has sent Brent crude’s price
to nearly $120 per barrel at times.
In the bond market, Treasury yields also eased. That could help soften
the rise in rates for mortgages and other kinds of borrowing since the
beginning of the war. That in turn could lessen the pressure on the
economy.
The yield on the 10-year Treasury fell to 4.32% from 4.39% late Tuesday,
though it remains well above its 3.97% level from just before the war.
Even gold, which has been one of the investment world’s worst losers
through the war, rose. It climbed 3.4% to settle at $4,552.30 per ounce.
Gold’s price had briefly gotten near $5,400 early this month. That was
before Treasury yields rushed higher on worries that high oil prices
would drive inflation upward and prevent the Federal Reserve from
cutting interest rates. When bonds are paying more in interest, they
make gold, which pays its investors nothing, less attractive in
comparison.
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Alexander Weitzman works on the floor at the New York Stock Exchange
in New York, Wednesday, March 25, 2026. (AP Photo/Seth Wenig)
 On Wall Street, Arm Holdings soared
16.4% after the U.K. company announced a suite of chips for data
centers and artificial-intelligence technology.
Robinhood Markets rallied 5% to help lead U.S. stocks after its
board authorized a program to send up to $1.5 billion to
shareholders by buying back the company’s stock.
Terns Pharmaceuticals rose 5.7% after Merck said it would buy the
oncology company in an all-cash deal valuing it at $6.7 billion.
Merck rose 2.6%.
On the losing end of Wall Street was On Holding. The Swiss company
that sells On shoes slumped 11.2% after saying its chief executive
officer, Martin Hoffmann, is stepping down.
In Hong Kong, Pop Mart International Group tumbled 22.5% after the
company behind the popular Labubu dolls reported explosive growth in
profit and revenue, but not enough to meet analysts’ expectations.
The stock prices for the parent companies of YouTube and Instagram
held relatively steady after a jury found them liable in a
first-of-its-kind lawsuit that aimed to hold social media platforms
responsible for harm to children using their services. Alphabet
added 0.2%, and Meta Platforms rose 0.3%.
All told, the S&P 500 rose 35.53 points to 6,591.90. The Dow Jones
Industrial Average gained 305.43 to 46,429.49, and the Nasdaq
composite climbed 167.93 to 21,929.83.
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AP Business Writers Chan Ho-him and Mat Ott contributed.
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