The S&P 500 ETF ($SPY) staged a sharp reversal in after-hours trading on March 20, 2026, climbing more than 1% and erasing much of the day’s losses.

The move followed President Donald Trump’s Truth Social post indicating the U.S. is “getting very close to meeting our objectives as we consider winding down our great Military efforts in the Middle East with respect to the Terrorist Regime of Iran.”

Markets Rebound Sharply as Trump Signals Shift on Iran Conflict: $SPY Surges Over 1% in After-Hours Trading

The Kobeissi Letter highlighted the development on X: “BREAKING: The S&P 500 ETF, $SPY, posts a massive reversal in after hours trade, now up over +1%, as President Trump says he is considering ‘winding down’ the Iran war.”

Trump’s comments marked a pivot from earlier statements ruling out a ceasefire and amid reports of additional U.S. troop deployments. He emphasized that once Iran’s threats are neutralized—including its missile capabilities, navy, air force, and nuclear ambitions—the U.S. would not lead policing of the Strait of Hormuz, leaving that to other nations reliant on the route.

Major outlets, including BBC, CNBC, The Guardian, Reuters, and NPR, confirmed the remarks, noting mixed signals: de-escalation language alongside ongoing military preparations.

Investors reacted swiftly, interpreting the statement as a potential off-ramp after weeks of conflict-driven volatility that had erased trillions in market value and pushed the S&P 500 to its 2026 low earlier that day.

The rally added roughly $900 billion in market cap from intraday lows, per market commentary, reflecting relief over reduced geopolitical risk and its implications for oil prices, inflation, and broader equities.

Markets remain closed until Monday. Traders will watch for follow-through from the White House, Iran’s response, and any impact on energy markets and Fed policy outlooks.

The situation is fluid—any new developments could quickly shift sentiment.