Financial Markets                      04/01 15:40

   

   NEW YORK (AP) -- Stocks rushed higher worldwide, and oil prices eased 
Wednesday as hopes built that the war with Iran could end soon. That's even 
though some of the signals investors saw as hopeful are already under dispute, 
and several earlier bouts of optimism in financial markets quickly got undercut 
by continued, fierce fighting in the war.

   The S&P 500 rose 0.7% and added to its leap from the day before, which was 
its best since last spring. That followed even bigger gains for stock markets 
across Europe and Asia, including an 8.4% surge in South Korea, which were 
catching up to Wall Street's rally from Tuesday.

   The Dow Jones Industrial Average climbed 224 points, or 0.5%, and the Nasdaq 
composite rallied 1.2%.

   Oil prices also fell back toward $100 per barrel after President Donald 
Trump said late Tuesday that the U.S. military could end its offensive in two 
to three weeks.

   That added to optimism following a couple tenuous signals of hope from 
earlier Tuesday that Wall Street latched onto, including a news report quoting 
Iran's president as saying that it has "the necessary will to end the war" as 
long as certain requirements are met, including "guarantees to prevent a 
recurrence of aggression."

   The worry on Wall Street has been that the war may last a long time and keep 
oil and natural gas from the Persian Gulf out of global markets, which could 
create a brutal blast of inflation.

   But hope has been quick to reverse to doubt on Wall Street, triggering manic 
swings back and forth for financial markets since the war with Iran began. 
Trump has also made statements that lifted markets, only to see the gains 
quickly disappear after increasing his military threats.

   Shortly before Wall Street began trading on Wednesday, Trump claimed in a 
post on his social media network that Iran "has just asked the United States of 
America for a CEASEFIRE!"

   "We will consider when Hormuz Strait is open, free, and clear. Until then, 
we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!"

   But Iran's Foreign Ministry spokesman, Esmail Baghaei, quickly called that 
claim "false and baseless," according to a report on Iranian state television.

   Oil prices also remain high, even if they've eased recently. The price for a 
barrel of Brent crude oil, the international standard, was sitting around $101 
following its declines, which is still up from roughly $70 before the war began.

   U.S. gasoline prices rose again overnight to a national average of $4.06 per 
gallon, according to the auto club AAA.

   Iran, meanwhile, hit an oil tanker off the coast of Qatar and Kuwait's 
airport on Wednesday while airstrikes battered Tehran as the fighting 
continued. Iran also continues to hold a grip on the Strait of Hormuz, where a 
fifth of the world's traded oil passes during peacetime.

   "De-escalation hopes have given markets a lift, but we think the effects of 
the war would, in many cases, persist even if the war did end soon," Thomas 
Mathews, head of markets, Asia Pacific at Capital Economics, said in a research 
note Wednesday.

   "It's worth thinking through how markets might fare if the war were to end 
'very soon,'" he wrote. "Do markets have further to recover if sentiment 
continues to improve? The answer is almost certainly yes."

   The White House said Trump will deliver a public address Wednesday evening 
on the Iran war.

   On Wall Street, three out of every five stocks within the S&P 500 rose as 
Big Tech powered the move higher. Gains of 3.4% for Alphabet and 0.8% for 
Nvidia were two of the strongest forces lifting the S&P 500.

   Eli Lilly rallied 3.8% after U.S. regulators approved its GLP-1 pill for 
weight loss.

   Such gains have pulled the S&P 500, which sits at the heart of many 401(k) 
accounts, back to within 5.8% of its all-time high set early this year. Just on 
Monday, the index briefly neared a 10% drop from its record, a steep-enough 
fall that professional investors have a name for it: a "correction."

   Nike sank 15.5% even though it reported a stronger profit for the latest 
quarter than expected. Analysts said it gave some lackluster financial 
forecasts.

   Oil companies also fell with the price of crude. Exxon Mobil slumped 5.2%, 
and Chevron dropped 4.6%.

   All told, the S&P 500 rose 46.80 points to 6,575.32. The Dow Jones 
Industrial Average added 224.23 to 46,565.74, and the Nasdaq composite climbed 
250.32 to 21,840.95.

   In stock markets abroad, indexes leaped more than 2% in France and Germany. 
Asian markets had even bigger gains.

   Tokyo's Nikkei 225 jumped 5.2% after a survey showed business sentiment for 
major Japanese manufacturers improved despite worries about the Iran war.

   In the bond market, Treasury yields held relatively steady after a report 
said U.S. retailers made more money in February than economists expected. A 
separate report said U.S. manufacturing growth last month was slightly faster 
than economists expected.

   The 10-year Treasury yield rose to 4.32% from 4.30% late Tuesday.

   ___

   AP Business Writers Chan Ho-him and Matt Ott contributed.

   ---------

   itemid:80a8391c0729872ae2a486526dbc8abd