U.S. stocks closed higher on Wednesday, with the Dow Jones Industrial Average rising by 300 points. Investors focused on the latest developments in the Middle East, anticipating a potential peace agreement between the U.S. and Iran. In related news, reports indicated the U.S. is deploying the Army's 82nd Airborne Division to the region.

The Dow climbed 305.43 points, or 0.66%, to close at 46,429.49. The Nasdaq Composite advanced 167.93 points, or 0.77%, to 21,929.83. The S&P 500 gained 35.53 points, or 0.54%, finishing at 6,591.90.

Market gains were supported by reports that the U.S. had delivered a 15-point proposal to Iran via Pakistan aimed at ending hostilities, which eased concerns over energy prices and contributed to a decline in crude oil.

Citing two unnamed officials, media reports suggested the U.S. has submitted a peace plan to Iran to conclude the conflict. The proposal was reportedly transmitted through Pakistani channels.

However, Iranian military sources indicated that Washington may have been speaking unilaterally when claiming negotiations with Tehran were underway.

It is clear that both sides remain far apart in their positions, and attacks from each side have continued.

A major financial news outlet reported that the U.S. is preparing to deploy approximately 3,000 soldiers from the 82nd Airborne Division to the Middle East. According to informed sources, around 1,000 troops are expected to be sent to the region in the coming days.

This deployment news emerged as U.S. President Donald Trump and his administration stated that the U.S. is engaged in talks with Iran to end the conflict.

Earlier on Tuesday, President Trump said the U.S. is "currently" negotiating with Iran, adding that Tehran is "reasonable" and appears eager to reach a peace agreement.

Iranian state media, however, stated that the country would not accept a ceasefire plan proposed by the United States.

Iranian media outlined five conditions set by Iran to end the war: 1. A complete halt to "aggression and assassinations" by hostile forces. 2. Concrete guarantees against future military attacks on Iran. 3. Clearly defined and guaranteed war reparations. 4. An end to hostilities on all fronts, including conflicts involving regional resistance groups. 5. International recognition and guarantees of Iran's sovereignty over the Strait of Hormuz.

Meanwhile, oil prices fell on Wednesday. U.S. Treasury yields also declined significantly amid lower oil prices and growing hopes for peace.

Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, commented on Tuesday, "We continue to view this as a single-variable market driven by oil prices. Oil and interest rates are driving equities. For now, we believe market pricing aligns with current conditions, and we expect continued volatility and reactions as the situation evolves."

He added, "I am not overly concerned about the economy. I believe the U.S. economy can certainly withstand oil prices at $90 or $100 per barrel. My slight concern lies with interest rates and worries that persistent inflation could weigh on stock valuations."

The conflict has led to sharp swings in stock markets this week. On Tuesday, markets gave back some of Monday's gains. On Monday, major indexes surged more than 1% after President Trump posted on Truth Social that the U.S. and Iran had "very good and productive discussions regarding a complete and total resolution of hostilities in the Middle East." However, Iranian state media later denied reports of direct talks between the two countries.

J.P. Morgan’s trading desk noted in a report, "While questions remain about who within Iran can restrain military activity and what would satisfy Israel’s interests, markets appear to be expressing a hopeful view for a rebound from current levels. It is also unclear whether Iran will abandon previous demands, including security guarantees against future aggression and compensation for losses incurred during this conflict."

Technology stocks led the gains on Wednesday, with Nvidia, AMD, and Intel all posting significant advances. Shares tied to a stable economy also rose, with financial and industrial sectors moving higher.

On the economic data front, the U.S. Bureau of Labor Statistics reported that import prices increased by 1.3% in February, exceeding expectations and marking the largest monthly rise in nearly four years. A notable rise in non-fuel goods costs indicated underlying inflationary pressures were building even before the recent surge in energy prices.

While import costs surged, export prices also jumped 1.5%, significantly higher than January’s 0.6% increase. Economists had anticipated import prices to rise by only 0.6%. Together, these figures suggest mounting upstream inflationary pressures as Federal Reserve officials consider their next steps on interest rates.

The last time import prices reached such elevated levels was in March 2022, when annual CPI inflation peaked above 9% several months later, just as the Fed began raising benchmark interest rates.