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US Stocks Rise on Middle East Peace Hopes and Easing Inflation
US Markets Rally on Geopolitical Optimism
Wall Street's main indexes rallied on Tuesday, with the Dow Industrials gaining 0.66%, the S&P 500 adding 1.18%, and the NASDAQ climbing nearly 2%. President Donald Trump told The New York Post that talks to end the Iran war could resume over the next two days, boosting investor optimism for a resolution to the Middle East conflict and easing geopolitical risks.
Inflation Data and Bank Earnings Overview
Meanwhile, inflation data showed US producer prices (PPI), while still elevated, increased less than expected in March. Brian Krauss, President of Sharpe Investments, explained that while PPI was running at 4% annually, which is above the Fed's 2% target, it was below the expected 4.6%. The core PPI, excluding food and energy, increased only 0.1% on a monthly basis, signaling easing inflation pressures. This, combined with oil prices coming off, fueled a strong risk rally.
In corporate news, big banks reported more earnings. Citigroup beat first-quarter profit estimates, sending its shares up more than 2.5% to their highest level in nearly two decades. JPMorgan Chase also posted a bigger-than-expected jump in first-quarter profit, but CEO Jamie Dimon warned of mounting global economic risks, causing shares to end lower by 0.82%. Shares of Wells Fargo fell more than 5.5% after the bank reported first-quarter interest income and revenue that fell short of Wall Street expectations. In the airline sector, United Airlines and American Airlines shares climbed 2.10% and 8.01% respectively, after Reuters reported that United CEO Scott Kirby had pitched a potential merger with American Airlines to President Trump earlier this year, raising the prospect of a deal that could reshape the industry.
*Source: YouTube: Reuters (2026-04-14)*
