Reports of U.S.-Iran Contact Lift New York Stocks… Oil and FX Stabilize

Korea Economic Daily

Summary

On news that Iran proposed negotiations with the United States, the three major U.S. stock indexes ended the session higher, the report said.
It said expectations for an end to the U.S.-Iran dispute and the U.S. government’s measures to stabilize oil prices helped revive risk appetite.
It added that improving U.S. service-sector conditions and private-sector employment beating forecasts supported bargain-hunting.

Forecast Trend Report by Period

Economic indicators are showing signs of stabilization after reports that Iran proposed negotiations to the United States.

On the 4th (local time), near the close on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended up 238.14 points (0.49%) from the previous session at 48,739.41. The Standard & Poor’s (S&P) 500 rose 52.87 points (0.78%) to 6,869.50, and the Nasdaq Composite jumped 290.79 points (1.29%) to finish at 22,807.48. All three major U.S. indexes closed higher.

The gains reflect expectations that the dispute between the United States and Iran could end sooner than anticipated. The New York Times (NYT) reported that the day after U.S. and Israeli airstrikes, Iranian intelligence officials, via a third country, proposed talks to the U.S. Central Intelligence Agency (CIA) to end the conflict.

Risk appetite returned to equities as crude markets showed signs of calming on U.S. government measures to stabilize oil prices.

News that U.S. service-sector conditions improved sharply, sustaining an expansion streak for 20 consecutive months, also supported bargain-hunting. According to data compiled by U.S. employment firm Automatic Data Processing (ADP), private-sector employment in the United States increased by 63,000 in February from the prior month. The figure exceeded the Dow Jones consensus estimate (48,000) and marked the largest monthly increase since July 2025.

Kim So-yeon, Hankyung.com reporter sue123@hankyung.com