Dow rises 200 points as Trump predicts a deal with Iran before ceasefire expires: Live

U.S. stocks rose on Tuesday as President Donald Trump told CNBC he expects the U.S. and Iran to make a “great deal” ahead of a ceasefire that’s set to expire Wednesday.

The Dow Jones Industrial Average advanced 270 points, or 0.5%, boosted by gains in UnitedHealth and Amazon. The S&P 500 and Nasdaq Composite added 0.2% and 0.3%, respectively. The Russell 2000 index moved up 0.4%, scoring a fresh all-time high.

“We’re going to end up with a great deal,” Trump said on CNBC’s “Squawk Box” on Tuesday. “They have no choice. We’ve taken out their Navy, we’ve taken out their Air Force, we’ve taken out their leaders.”

The president added, however, that the U.S. military is “ready” to bomb Iran if a deal is not signed by the ceasefire deadline and that he does not want to extend it.

This comes after Trump said earlier Tuesday in a Truth Social post that Iran “Violated the Cease Fire numerous times!”

Oil prices were steady before the deadline following a big decline in recent days in anticipation of a deal. West Texas Intermediate futures fell 0.6% to above $89 per barrel. Brent futures shed 0.3% to trade above $95 a barrel.

The major averages slipped on Monday with traders on edge ahead of the ceasefire expiration and momentum slowing a bit on the market comeback. The Nasdaq snapped its longest winning streak since 1992 of 13 days.

In the prior trading week, the S&P 500 and Nasdaq notched multiple all-time intraday and closing highs on hopes for an end to the Iran war in the near future. Notably, the former finished above 7,100 for the first time ever.

Investors remain bullish on the broader picture ahead for equities.

“We still think that the market is going to overshoot to the upside. We have our upside target of 7,300 by July, which is basically our year-end target,” Ohsung Kwon, chief equity strategist at Wells Fargo, said on CNBC’s “Closing Bell: Overtime” on Monday afternoon. “I think the economy is going to be fine for the next three months.”

Kwon’s 7,300 price target for the S&P 500 would represent an upside of 3% from the index’s Monday close.

Among the winners of Tuesday’s session, UnitedHealth shares jumped more than 7% after the health insurance giant’s first-quarter results surpassed Wall Street’s expectations. The company also hiked its earnings outlook. Amazon shares were nearly 2% higher on the heels of the company agreeing to invest up to $25 billion in artificial intelligence startup Anthropic.