US stocks today: US stocks open higher on hopes of Iran war de-escalation; Dow jumps over 500 points

Wall Street opened higher on Tuesday, as investors drew comfort from signs of potential de-escalation in the Middle East conflict that has weighed heavily on global markets this month.

The Dow Jones Industrial Average rose 523.50 points, or 1.16%, to 45,739.64. The S&P 500 gained 91.36 points, or 1.44%, to 6,435.08, while the Nasdaq Composite climbed 416.90 points, or 2.01%, to 21,211.54.

The rebound comes after a sharp correction in recent sessions, with both the Dow and the Nasdaq ending last week about 10% below their record closing highs.


Sentiment today improved after a Wall Street Journal report suggested that US President Donald Trump is open to ending the military campaign against Iran, even if the Strait of Hormuz remains largely closed. The strategic waterway handles roughly a fifth of global oil shipments, making it central to energy market stability.

According to the report, the US could pivot toward diplomatic engagement with Iran, while encouraging European and Gulf allies to take a more active role in securing the region. Trump also signalled a more assertive stance on social media, urging allies including the United Kingdom to step up efforts in the Strait.

Oil prices ease

Oil prices, which had surged on supply disruption fears, showed signs of stabilisation. Brent crude edged down marginally to $107.37 per barrel, while US crude rose 0.7%, easing some of the pressure on equities.

Bond markets also reflected a shift in sentiment. The benchmark US 10-year Treasury yield fell 9.6 basis points to 4.344%, marking its first decline in three sessions and the sharpest daily drop since early August. The two-year yield, which is more sensitive to interest rate expectations, declined 8.8 basis points to 3.828%.

Despite the drop, yields remain elevated on a monthly basis, with the 10-year yield up 38 basis points so far, its biggest monthly rise since December 2024. Higher yields tend to compete with equities for investor flows, limiting upside in stock markets.

Indian markets

Back home, Indian equities are poised for a relief rally after days of sustained selling pressure. GIFT Nifty was trading over 100 points higher late on Tuesday, indicating a positive start when markets reopen.

Domestic markets remained shut on Tuesday on account of Shri Mahavir Jayanti, with both the BSE and NSE observing one of two scheduled holidays this week.