Oil Crashes 10%, Stocks Rebound On Trump End-Of-War Signals – State Street SPDR Dow Jones Industrial Average ETF Trust (ARCA:DIA)

U.S. stocks are trading higher Tuesday as crude oil’s sharp sell-off triggered a broad risk-on rotation, offering relief after one of the most volatile weeks for equity markets since the Iran war began.

• State Street SPDR Dow Jones Industrial Average ETF Trust stock is showing upward bias. What should traders watch with DIA?

The war in Iran and the closure of the Strait of Hormuz had pushed oil near $120 per barrel on Monday and rattled global financial markets, but President Donald Trump‘s remarks on Monday sharply reversed the energy trade.

Trump stated on Monday that the Iran conflict may be nearing its end, though Iranian authorities signaled continued readiness to fight following additional strikes near the Persian Gulf.

“It’s going to be ended soon.”

Trump also said he is considering taking control of the Strait of Hormuz, indicating that the U.S. Navy will escort tankers through the Strait if needed.

“The Strait of Hormuz is going to remain safe.”

Crude oil tumbled 10% to $85 a barrel during midday trading in New York, marking 10% drop from Monday’s close.

The S&P 500 rose 0.3% to 6,810, the Dow Jones Industrial Average added 0.4% to 47,930, and the Nasdaq 100 gained 0.5% to 25,090. Meanwhile, the Russell 2000 outperformed with a 0.7% advance to 2,570.

The Cboe Volatility Index (VIX) — the market’s fear gauge — dropped 9.3% to 23 levels, signaling a meaningful easing of near-term fear after last week’s spike.