New York Stock Exchange (NYSE). /Courtesy of Reuters

As the military confrontation between Israel and Iran continues for the fourth day, optimism emerged that tensions between the two sides could ease, leading to a rise in the New York stock market on the 16th (local time).

On that day, the Dow Jones Industrial Average closed at 42,515.09, up 317.30 points (0.75%) from the previous session. The Standard & Poor's (S&P) 500 index rose by 56.14 points (0.94%) to 6,033.11, and the technology-focused Nasdaq Composite Index closed at 19,701.21, up 294.39 points (1.52%).

Risk appetite revived as major tech stocks showed strong gains across the board. Tesla and Google each rose by 1.17%, while NVIDIA increased by 1.92%. Meta Platforms jumped 2.9% on news that it will introduce advertising on its messenger service WhatsApp. U.S. Steel surged 5.1% due to the approval by U.S. President Donald Trump of the acquisition of U.S. Steel by Nippon Steel.

The geopolitical risks emanating from the Middle East appear to be easing. The Wall Street Journal (WSJ) reported that Iran communicated to Arab country officials the possibility of returning to nuclear negotiations with the United States. However, a prerequisite was that the United States should not participate in Israel's attacks against Iran.

Reuters reported that Iran requested Gulf countries such as Qatar, Saudi Arabia, and Oman to exert influence on President Donald Trump for a ceasefire with Israel.

Earlier, the Dow fell by 1.8% due to the repercussions of Israel's airstrikes on Iran's nuclear facilities and Iran's missile retaliation.

International oil prices reversed course, influenced by expectations that the situation in the Middle East may ease. The Brent crude futures contract at the ICE futures exchange settled at $73.23 per barrel, down 1.35% from the previous session. The price of Brent crude soared 7% in just one day following the news of the military confrontation on the 13th.