Traders are rushing into markets, fueling a two-day surge in the S&P 500. President Trump's address Wednesday about the Iran conflict is expected to include plans to wind down U.S. operations within weeks, though risks like sustained oil prices remain. The tech-heavy Nasdaq jumped 1.2%, marking its best two-day run since May 2025. Boeing and Caterpillar shares led the Dow Jones Industrial Average higher for the third consecutive session. Some investors simply fear missing out after last year's rapid rebound when Trump reversed levies, catching hedge funds flat-footed. 'You get a whiff of good news, and people are quick to re-risk,' said trader Tom Keen.

Market optimism stems partly from confidence in America's economic resilience and options hedging strategies. However, elevated oil prices could threaten inflation and growth if sustained. The rally reflects both tactical positioning and historical market psychology, with investors wary of repeating past mistakes where sudden moves caught positions unprepared. Caterpillar's performance exemplifies industrial sector strength driving broader gains.

While the immediate outlook appears positive, the long-term impact of Iran-related risks remains uncertain. Boeing and other defense contractors could face volatility depending on conflict developments. Investors appear cautiously optimistic but vigilant as the market digests potential post-war economic shifts.