U.S. stocks finish higher as Trump says war could be over soon

NEW YORK, March 9 (Xinhua) -- U.S. stocks ended higher on Monday, recovering from early session heavy losses, as indications of a potential swift conclusion to the ongoing U.S.-Israeli strikes on Iran triggered a sharp pullback in global oil prices.

The Dow Jones Industrial Average rose 0.5 percent, to 47,740.8. The S&P 500 added 0.83 percent to 6,795.99. The Nasdaq Composite Index increased by 1.38 percent, to 22,695.95.

Nine of the 11 primary S&P 500 sectors ended in the green. Technology and communication services led the gainers, advancing 1.8 percent and 1.13 percent, respectively. Meanwhile, the financials and energy sectors led the laggards, declining 0.52 percent and 0.43 percent, respectively.

The broader market turned positive in afternoon trading following remarks from U.S. President Donald Trump suggesting the war with Iran could conclude sooner than anticipated. He reportedly told a CBS journalist that "the war is very complete, pretty much."

The geopolitical developments prompted a dramatic reversal in energy markets. West Texas Intermediate crude oil futures for April delivery, which had surged past 119 U.S. dollars per barrel in overnight trading for the first time since 2022, settled at 94.77 dollars a barrel.

The sudden drop in oil prices immediately relieved travel and leisure equities, which are highly sensitive to fuel costs. Shares of major U.S. carriers, including Delta Air Lines, United Airlines, and American Airlines, alongside cruise operators such as Norwegian Cruise Line, Carnival, and Royal Caribbean, erased earlier losses to finish higher.

In the technology sector, all of the major "Magnificent Seven" stocks rebounded from early declines to post gains. Additionally, memory chip manufacturers saw significant upward movement, with SanDisk and Western Digital finishing up nearly 12 percent and 7 percent, respectively.

Despite the session's optimism, some market experts warned that investors might underestimate the risks of a broader economic recession or an equity market correction. Analysts at Deutsche Bank noted that a continuous stream of global shocks over the past four years has left investors somewhat desensitized to short-term disruptions, leaving overall equity positioning slightly below neutral.

Conversely, analysts at Morgan Stanley offered a more optimistic outlook, forecasting that U.S. equities will likely remain constructive for at least another year despite the elevated geopolitical risks. "We think we're closer to the end of this rolling correction than the beginning and remain constructive over the next 6-12 months," analysts said. ■