Meta Expands Chip Deal with Broadcom, Wall Street Traders Cash In on Volatility

Stocks are within striking distance of record highs, the Nasdaq has strung together its longest winning streak since 2021, and Wall Street trading desks are minting money off the very volatility that has rattled everyone else. Tuesday’s session pushed the S&P 500 up 1.2% and the Nasdaq nearly 2%, capping a 10-day, 14% surge for the tech-heavy index that has erased its losses for the year. The rally rests on three pillars: optimism that the worst of the Iran conflict is over, a solid start to earnings season from the big banks, and a cooler-than-expected wholesale inflation report.

Markets Bet on a De-escalation in the Iran Conflict

The dominant market narrative this week is that the geopolitical worst is behind us. President Trump added fuel to that fire in a morning interview, saying the Iran war is “very close to over” and that another round of peace talks is coming. The market is buying it. WTI crude oil has fallen to around $90 a barrel, down sharply from $118 a couple of weeks ago. The U.S. Navy blockade on the Strait of Hormuz remains in place, targeting ships to and from Iranian ports, but officials report that more than 20 commercial vessels passed through the strait in the past 24 hours. That is still a fraction of pre-war traffic, but the trend is improving, and traders are treating it as confirmation that the worst economic disruption is behind them.