President Trump Says Iran War Is "Close To Over." Will Markets Boom?

By Jeremy Bowman – Apr 15, 2026 at 1:38PM ESTKey PointsThe S&P 500 was hovering near all-time highs on Wednesday afternoon.President Trump said the stock market would boom after the end of the war.The S&P 500's valuation is historically high. Stocks were climbing for the third day in a row this week as enthusiasm over the expected end of the war in Iran buoyed the market, and investors looked forward to earnings season, which has kicked off this week with strong results from the top banks. As of 12:22 p.m. ET, the S&P 500 (^GSPC +0.69%) was up 0.5% and on the verge of an all-time high, while the Nasdaq Composite had jumped 1.2% as investors pivot to tech stocks.

The Dow Jones Industrial Average, which has the least exposure to the tech sector, was down 0.4%. Image source: Getty Images. President Trump makes a big promise In an interview with Fox Business Network's Maria Bartiromo this morning, President Trump said the war is "very close to over," and added that once it ended, "the stock market is going to boom. It's already booming." Since the Iran war broke out, investors have been hanging on to nearly every comment from Trump about the conflict, and indexes have fluctuated up and down wildly. Stocks soared after Trump announced a ceasefire last week and have continued to climb since then as investors seem increasingly confident that the war will be resolved, or that at least the most bearish scenarios are now off the table. However, oil prices are still elevated from before the war began, and both sides have not yet come to a peace agreement that would keep the Strait of Hormuz open. Will the stock market keep booming? President Trump's prediction about the stock market warrants some caveats. First, with the S&P 500 now hovering near 7,000, above where it was before the war started, it appears the war is no longer an obstacle to the stock market's growth, but other factors are. Prior to the war, there were concerns about valuations getting stretched, especially amid fears of a weakening labor market or an AI bubble, and those issues haven't gone away.

The State Street SPDR S&P 500 ETF (SPY +0.66%) now trades at a price-to-earnings ratio of 27.6, representing a significant premium to its historical average. Meanwhile, growth in the U.S. labor market has been sluggish over the last year. A boom is possible as those tend to be driven by sentiment, but it would likely only add to valuation-related fears. Overall, trying to time the market is generally a poor approach to investing. Investors are better off buying high-quality stocks at reasonable prices. The rotation back into tech stocks is a sign that investors believe that sector is still undervalued relative to the broad market. Given that many of the "Magnificent Seven" stocks are trading at similar levels to the S&P 500, that movement seems reasonable. Read NextApr 15, 2026 •By Katie BrockmanThis Is the Biggest Reason Investors Lose Money During a Stock Market Crash -- and How to Avoid ItApr 15, 2026 •By Bram BerkowitzThe S&P 500 Has Erased Every Loss From the Iran War.

Here Is Why Long-Term Investors Who Stayed the Course Are Being Rewarded Right NowApr 15, 2026 •By Trevor JennewineSpaceX IPO: History Says the Stock Will Do This When It Starts Trading.Apr 15, 2026 •By Sean WilliamsWe're Precisely 1 Month Away From a Historic Shake-Up at the Federal Reserve -- and Wall Street Isn't Ready for ItApr 15, 2026 •By Adria CiminoAfter Turmoil in March, Will the S&P 500 Tumble in April? Here's What History Says.Apr 14, 2026 •By Emma NewberyStock Market Today, April 14: Markets Erase Iran War Losses on Talk OptimismAbout the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedS&P 500 IndexSNPINDEX: ^GSPC$7,013.30(+0.66%)+$45.92SPDR S&P 500 ETF TrustNYSEMKT: SPY$699.10(+0.67%)+$4.64*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.