Stocks climbed on Wednesday to kick off the start of a new month and quarter on a high note as market participants raised expectations that the U.S-Iran war may be deescalating.

The Dow Jones Industrial Average (DIA  ) climbed 220 points to settle at 46,565.74 on Wednesday, while the S&P 500 Index (SPY  ) added 0.7% and the Nasdaq Composite (QQQ  ) gained 1.2% to close at 6,575.32 and 21,840.94, respectively.

President Donald Trump said in a post on his social media platform Truth Social that the U.S. would consider entering into a ceasefire with Iran when the Strait of Hormuz is "open, free, and clear," adding that "until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!"

Oil futures dipped lower on Wednesday following Trump's comments. West Texas Intermediate futures closed down 1.2% at $100.12 per barrel, while international benchmark Brent crude lost nearly 3% to end the session at $101.16 a barrel.

Economists at Bank of America said Wednesday that the war in the Middle East is causing slower growth and higher inflation in the U.S., even if the conflict ends in the next few weeks.

"The war dividend so far: mild stagflation," economists led by Claudio Irigoyen wrote in a note, referring to a period of low economic growth and higher prices. The economists forecast that U.S. economic growth will take a 50 basis point hit to 2.3% in 2026, with inflation expected to reach 3.6%.

"This is consistent with a stagflationary shock that would impact inflation earlier and more prominently than GDP growth, based on our new base case with oil prices remaining close to $100/bbl for the rest of 2026," Irigoyen wrote.

On the economic front, U.S. retail sales rose in February, the Commerce Department reported Wednesday, as Americans continued to spend before the start of the U.S-Iran war at the end of the month. Headline sales rose 0.6% for he month, while sales excluding autos rose 0.5%. On an annual basis, sales gained 3.7%.

In earnings news, Nike (NKE  ) shares fell on Wednesday after the retailer warned it expects sales to decline for the rest of the year even as it topped Wall Street expectations in its fiscal third quarter. Chief Financial Officer Matt Friend said during the company's earnings call that Nike expects sales for its current quarter to fall between 2% and 4%, compared to analyst estimates for sales to increase.

"We also recognize that the environment around us has become increasingly dynamic, and we could experience unplanned volatility due to the disruption in the Middle East, rising oil prices and other factors that could impact either input costs or consumer behavior," Friend said. "We are focused on what we can control."

Looking ahead, market participants will trade ahead of Friday's jobs report for March.