March 26 Close: US Stocks Rise, Dow Up 300 Points as Markets Watch Latest Middle East Developments

On the early morning of March 26 Beijing time, U.S. stocks closed higher on Wednesday, with the Dow up 300 points. The market is focused on the latest developments in the Middle East and is hopeful that the U.S. and Iran can reach a peace agreement. Additionally, reports indicate that the U.S. is deploying the 82nd Airborne Division to the Middle East.

The Dow rose 305.43 points, or 0.66%, to 46,429.49; the Nasdaq increased 167.93 points, or 0.77%, to 21,929.83; the S&P 500 gained 35.53 points, or 0.54%, to 6,591.90.

Reports suggest that the U.S. submitted a 15-point proposal to Iran through Pakistan to end hostilities, easing concerns over energy prices, which led to a decline in oil prices and a rise in U.S. stocks.

According to media sources citing two anonymous officials, the U.S. is believed to have presented a peace plan to Iran to end the war. The media states that this 15-point plan was delivered via Pakistan.

However, the Iranian military hinted that Washington’s claims of negotiations with Tehran to end the war might be self-delusional.

What is certain is that both sides still seem far apart, and attacks from both sides continue.

A well-known financial media outlet reports that the U.S. is deploying the 82nd Airborne Division to the Middle East. It is said that the Pentagon is preparing to send about 3,000 soldiers from the 82nd Airborne Division to the region.

Two informed sources revealed that approximately 1,000 U.S. troops are expected to be deployed to the Middle East in the coming days. As this news broke, President Donald Trump and his administration stated that the U.S. is negotiating with Iran to end the conflict.

Before reports of the peace plan emerged, President Donald Trump earlier on Tuesday said that the U.S. is “currently” in negotiations with Iran. He added that Tehran is “talking reasonably” and hinted at a desire to reach a peace agreement.

Iranian state media announced that the country would not accept the U.S. proposed ceasefire plan.

Iranian media reported five conditions for ending the war: 1. A complete halt to enemy “aggression and assassinations.” 2. Specific guarantees that no more war will be launched against Iran. 3. Secured and clearly defined war reparations. 4. Ending all fronts of the war, including all resistance groups in the region. 5. International recognition and guarantees of Iran’s sovereignty over the Strait of Hormuz.

Meanwhile, oil prices fell on Wednesday. As oil prices declined and prospects for peace emerged, U.S. Treasury yields also dropped sharply.

Piper Sandler Chief Investment Strategist Michael Kantrowitz said on Tuesday, “We continue to see this as a single-variable market driven by oil prices. Oil and interest rates are pushing the stock market. For now, I think the market is pricing in the current situation, and we will continue to fluctuate and react as conditions change.”

He added, “I’m not too worried about the economy. I believe the U.S. economy can certainly withstand $90, $100 oil prices. My slight concern is interest rates and worries that ongoing inflation will drag down stock valuations.”

The war has caused significant volatility in the stock market this week. On Tuesday, the market gave back some of Monday’s gains. On Monday, after Trump posted on Truth Social that the U.S. and Iran had “had very good and productive talks to fully and completely resolve our hostile actions in the Middle East,” all three major indices surged over 1%. However, Iranian state media denied reports of direct negotiations between the two countries.

JPMorgan’s trading division stated in a report: “While questions remain about who within Iran can limit military activities and what can satisfy Israel’s interests, the market seems to be expressing a hope for a rebound from here. It’s also unclear whether Iran will abandon previous demands, including security guarantees against future invasions and compensation for losses suffered during this conflict.”

On Wednesday, technology stocks led the gains, with Nvidia, AMD, and Intel all rising sharply. Stocks benefiting from a steady economy, such as financial and industrial shares, also advanced.

Wednesday’s economic data showed that U.S. import prices rose 1.3% in February, exceeding expectations and marking the largest monthly increase in nearly four years. The significant rise in non-fuel commodity costs indicates that inflationary pressures are building before energy prices surged.

Alongside the rise in import costs, export prices increased 1.5%, well above the 0.6% gain in January. Economists had previously expected a 0.6% increase in import prices. As Federal Reserve officials consider the next steps on interest rates, these data collectively suggest upstream inflation pressures are intensifying.

The last time import prices reached such high levels was in March 2022, when the Federal Reserve raised interest rates, and the Consumer Price Index (CPI) inflation rate peaked above 9% a few months later.