The Dow surges more than 1,100 points as Wall Street soars to its best day since last spring

EW YORK (AP) — U.S. stocks surged to their best day since last spring, and the Dow Jones Industrial Average soared 1,125 points on Tuesday as doubt swung back to hope on Wall Street about a possible end to the war with Iran.

The S&P 500 leaped 2.9% for its largest gain since May. Just a day before, worries about the war had sent the main measure of Wall Street’s health more than 9% below its all-time high set early this year.

The Dow Jones Industrial Average rallied 2.5%, while the Nasdaq composite jumped 3.8%.

The rebound came as financial markets seized on a couple tenuous signals for hope about a possible end to the war. It’s the latest manic swing following weeks of frenetic back and forth amid uncertainty about the war. The moves also came as Wall Street marked the end of the year’s first quarter, a milestone that can cause a flurry of trading as fund managers close their books.

Analysts said optimism entered markets overnight following a report from The Wall Street Journal saying President Donald Trump told aides he’s willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed. The strait is a narrow waterway connecting the Persian Gulf to the open ocean, and a fifth of the world’s oil sails through it on a typical day.

Oil prices then took a sudden and sharp turn lower in midday trading following a news report from the Middle East quoting Iran’s president Masoud Pezeshkian as saying it has “the necessary will to end the war” as long as certain requirements are met, including “guarantees to prevent a recurrence of aggression.”