The Dow Jones Industrial Average surged over 500 points, or about 1.1%, while the S&P 500 gained around 1% and the tech-heavy Nasdaq Composite advanced roughly 1.2% in early trade.
Investor sentiment improved after reports from The Associated Press and The New York Times said the US had sent a 15-point peace plan to Tehran via Pakistan, signalling growing urgency to contain the conflict.
While President Donald Trump has said negotiations are underway, Iran has denied direct talks, highlighting continued uncertainty around the diplomatic push.
Despite the optimism, tensions remain elevated, with hostilities ongoing and reports that the US may deploy troops from the 82nd Airborne Division to the region. Iranian state media has also rejected US ceasefire efforts, underscoring the fragile outlook.
Meanwhile, oil prices tumbled on easing supply concerns. US crude (WTI) fell about 4% to near $87 per barrel, while Brent crude dropped roughly 5% to around $99. The decline in energy prices, along with softer Treasury yields, supported equities.
Gains were led by technology stocks, with chipmakers Nvidia, AMD, and Intel moving higher.
