U.S. stock market closes: Investors focus on Trump's important speech, with all three major indices closing higher

Ask AI · How investors interpret Trump’s Middle East hints?

Cailian Press, April 2 (Editor: Niu Zhanlin) On Wednesday Eastern US time, the three major US stock indices all closed higher, after US President Trump hinted that the Middle East conflict might be nearing an end, boosting market risk appetite.

Trump stated that US military actions have prevented Iran from acquiring nuclear weapons, and the US will withdraw from Iran soon, but if necessary, can conduct “targeted strikes” again.

He will deliver a national address later that evening on the Iran war issue, providing important updates on the situation.

Globalt Investments senior portfolio manager Thomas Martin said: “Trump’s statements often change. The market is trying to interpret his true intentions. Investors want to hear positive signals, hoping the war can end.”

Against the backdrop of investors betting that US and Israel military actions against Iran may end soon, US stocks have risen for the second consecutive trading day. Over the past month, due to conflicts disrupting oil transportation through the Strait of Hormuz, energy prices soared sharply, raising global inflation concerns.

Earlier, the market was buoyed by some “fragile optimistic signals,” including media reports that Iran’s president said that as long as certain conditions are met—such as guarantees to prevent future attacks—Iran is willing to end the war.

Kavak Macro Asia-Pacific Market Head Thomas Mathews pointed out in a report: “The hope for de-escalation has boosted the market, but even if the war ends soon, its effects will persist in many ways.”

He added: “It’s worth pondering—if the war ends quickly, how will the market perform? If sentiment continues to improve, is there still room for upward movement? The answer is almost certainly—yes.”

However, the risk of escalation remains high, which could continue to disrupt markets. Unless there is a clear end announcement, short-term volatility will likely persist.

Market Dynamics

At the close, the Dow rose 224.35 points, up 0.48%, to 46,565.86; the Nasdaq gained 250.32 points, up 1.16%, to 21,840.95; the S&P 500 increased 46.84 points, up 0.72%, to 6,575.36.

Among the 11 sectors of the S&P 500, telecommunications and industrials rose 1.65%, materials gained 1.16%, information technology/tech rose 1.14%, while energy declined 3.89%.

In US stock industry ETFs, the global airline ETF rose 2.60%, semiconductor ETF up 2.24%, global tech stock index ETF and tech sector ETF gained at least 1.51%, regional bank ETF up 1.07%, energy ETF down 3.74%.

Hot Stocks Performance

Most large tech stocks rose, with Alphabet A up 3.42%, Tesla up 2.56%, Meta up 1.24%, Nvidia up 0.77%, Apple up 0.73%, Amazon up 1.1%, Microsoft down 0.22%.

Intel surged 8.8%, after the chipmaker agreed to repurchase its Ireland chip factory holdings from Apollo Global Management for $14.2 billion, regaining full control of one of its key manufacturing assets.

Aluminum giant Alcoa jumped 8.64%, Century Aluminum rose 8.2%. The latest market news reports that the UAE’s largest aluminum producer, Emirates Global Aluminium (EGA),’s Tawiara smelter was attacked by Iranian missiles and drones last weekend, forcing shutdown due to “out-of-control” smelting equipment.

Boeing rose 4.2%, rising for the second day in a row, as the Pentagon has reached a framework agreement with Boeing and Lockheed Martin to triple the production capacity of PAC-3 MSE guidance heads.

Nike’s stock plummeted 16%, the largest single-day drop since June 2024. Despite better-than-expected quarterly earnings, analysts believe the company’s outlook guidance is relatively weak.

RH’s stock fell 19%, after the company reported earnings and revenue below analyst expectations. The home furnishings retailer blamed tariffs and bad weather, and expects revenue to decline 2% to 4% this quarter.

Most popular Chinese concept stocks closed higher, with the Livermore China concept stock leader index up 0.65%, Li Auto up over 3%, NIO, XPeng, and iQiyi up over 2%, Bilibili up over 1%.

Company News

【Elon Musk’s SpaceX reportedly filed for IPO】

SpaceX, owned by Elon Musk, is reportedly secretly submitting its IPO registration with the US Securities and Exchange Commission (SEC), taking a significant step toward possibly becoming the largest IPO in history. According to insiders, this satellite manufacturing and rocket launch company has filed its IPO documents confidentially. Previously, reports indicated SpaceX plans to raise about $40-80 billion through an IPO, with a target valuation of up to $1.75 trillion. The filing could see the company go public as early as July this year, consistent with Musk’s earlier internal timeline. Due to SpaceX’s choice of the current popular confidential filing method, most investors will have to wait until close to the listing to see the company’s financial data.

【OpenAI stock languishes in resale market, demand shifts to Anthropic】

According to Ken Smythe, founder of the secondary private equity trading platform NextRound Capital, on Wednesday, demand for OpenAI shares in their market is declining. In recent weeks, several hedge funds and venture capital firms holding large stakes contacted them seeking to sell about $600 million worth of OpenAI stock. Smythe said: “In fact, we can’t find anyone among hundreds of institutional investors willing to take these shares.” Another platform, Augment co-founder Adam Crawley, noted that OpenAI’s $852 billion valuation is vastly higher than Anthropic’s $380 billion, prompting investors to scramble for Anthropic’s shares.

【Eli Lilly’s blockbuster oral weight-loss drug approved】

Eli Lilly announced on Wednesday that the US Food and Drug Administration (FDA) has approved its oral GLP-1 drug for market launch. This marks a major milestone for Lilly and will test the market potential of new weight-loss medications. Following the news, Lilly’s stock closed up 3.78%. Lilly said the daily oral drug, named Foundayo, with the active ingredient orforglipron, will start shipping via its direct sales platform LillyDirect next Monday, and will soon be available in major pharmacies and telemedicine platforms. For insured patients, the minimum monthly cost is $25 with coupons; self-paying patients will pay between $149 and $349 per month depending on dosage.

(Ask AI, Niu Zhanlin)