US stocks end with gains after Trump says Iran war 'is very complete'

ISTANBUL

US stock markets ended higher Monday, rebounding from major losses after President Donald Trump said that the war with Iran "is very complete, pretty much."

The Dow Jones Industrial Average rose 0.5%, or 239.25 points, to 47,740.8.

The Nasdaq gained 1.38%, or 308.27 points, to 22,695.94, while the S&P 500 added 0.83%, or 55.97 points, to reach 6,795.99.

The Volatility Index (VIX), also known as the "fear index," fell 13.53% to 25.5.

Markets rebounded after Trump told CBS News that the Iran war "is very complete, pretty much.

"(Iran has) no navy, no communications, they've got no air force. Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones," he said.

He added that the US is “very far” ahead of his initial four- to five-week estimated time frame for the war.

As for the critical Strait of Hormuz, Trump said ships are moving through now but also that he is “thinking about taking it over.”

Earlier on Monday, Trump said that he has a plan to address surging oil prices driven by the war, but offered no details. "I have a plan for everything. You'll be very happy," he told the New York Post.

In addition, G7 finance ministers discussed the impact of the Iran conflict during a virtual meeting on Monday and signaled readiness to stabilize global energy markets. “We stand ready to take necessary measures, including to support global supply of energy such as stockpile release,” they said in a joint statement.

Brent crude oil prices fell sharply after the developments, dropping over 4% to around $87 per barrel, down from $119 overnight. US benchmark West Texas Intermediate (WTI) crude also fell 7.9% to $83.8 per barrel, after climbing as high as $119 overnight.

On the data side, US consumers’ short-term inflation expectations fell to 3% in February, according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations released on Monday.

Consumers’ medium- and long-term inflation expectations remained unchanged at 3%. During the same period, the median expected earnings growth fell by 0.2 percentage points to 2.5%.