Wall Street Extends Gains On Optimism Over US-Iran Peace Talks, Hormuz Reopening
Wall Street Extends Gains On Optimism Over US-Iran Peace Talks, Hormuz Reopening Published By, Last Updated: May 26, 2026, 19:51 IST The Dow Jones Industrial
Wall Street Extends Gains On Optimism Over US-Iran Peace Talks, Hormuz Reopening Published By, Last Updated: May 26, 2026, 19:51 IST The Dow Jones Industrial Average rose 0.3% to 50,735.99, while the S&P 500 gained 0.6% to 7,516.44. Early trading showed a broadly positive tone across major indices. (AFP file photo) Wall Street extended its gains on Tuesday as investors continued to bet that US and Iranian negotiators are moving closer to a deal that could end the war in West Asia and reopen the Strait of Hormuz. Early trading showed a broadly positive tone across major indices. The Dow Jones Industrial Average rose 0.3% to 50,735.99, while the S&P 500 gained 0.6% to 7,516.44.
The Nasdaq Composite added 0.8% to 26,552.86, driven by strength in technology stocks. Market sentiment has been supported for weeks by hopes of a breakthrough between Washington and Tehran, with traders increasingly pricing in the possibility of a partial or full agreement to stabilise the region and restore maritime traffic through Hormuz. Analysts say the rally reflects strong optimism rather than confirmed progress. Steve Sosnick of Interactive Brokers said markets are reacting more to expectations than concrete developments. ‘Market Is Hopeful’ “The market is so hopeful for a deal that would open the Strait of Hormuz that it doesn’t care about the details and it is willing to trade on hope rather than wait for the outcome," he said.
Investors largely ignored fresh geopolitical friction, including Iran’s accusations that the United States violated a ceasefire following overnight strikes on Iranian missile sites. Despite the tensions, US Secretary of State Marco Rubio said on Tuesday that a deal was still possible. “There were some talks going on in Qatar today, so we’ll see if we can make progress," Rubio said. Sosnick added that the underlying tone in markets remains firmly bullish, noting that investors have shown little hesitation even if expectations prove overly optimistic. “The stock market has not imposed a penalty for being wrong or for being overenthusiastic," he said. (With inputs from AFP) News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit Location: United States of America (USA) First Published: May 26, 2026, 19:51 IST News world Wall Street Extends Gains On Optimism Over US-Iran Peace Talks, Hormuz Reopening Disclaimer: Comments reflect users’ views, not News18’s.
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