The major U.S. stock indexes are trading higher as investors react to easing geopolitical tensions, sharply lower oil prices, and hopes that the recent flare-up in the Middle East may be giving way to renewed diplomacy. The Dow Jones Industrial Average is leading the gains, up 1.23%, while the NASDAQ is higher by roughly 242 points, or 0.95%, after rising more than 300 points in premarket trading. The S&P 500 is up 0.81%.

A major driver of the move is the sharp decline in crude oil. WTI crude is down more than $5.40 a barrel, extending its retreat as traders unwind the geopolitical risk premium that had built up over the past two weeks. Reports indicating a pause in U.S. military operations against Iran, along with signs that Tehran is also refraining from further escalation, have strengthened expectations that the conflict may not widen further.

Lower oil prices typically ease inflation concerns, reduce costs for businesses and consumers, and lessen the risk that energy price increases could complicate the Federal Reserve’s policy outlook. The decline is also improving market sentiment more broadly by easing fears that higher fuel costs will pressure corporate profit margins or weigh on consumer spending. That matters because energy prices often influence both headline inflation data and day-to-day business planning, so a sharp move lower can quickly shift attention back toward earnings and growth. Airlines, transportation companies, retailers, and other energy-sensitive sectors have benefited from the drop, while investors have rotated back into growth stocks after last week’s risk-off tone.

From a technical perspective, the NASDAQ’s hourly chart remains an important focus. During last week’s decline, the index repeatedly found buyers in a key swing-area support zone between 24,913 and 25,109. That support held through several tests, reinforcing it as an important technical floor. Today’s gap higher moved the index decisively away from that area, shifting attention from defense to whether buyers can build enough momentum to challenge higher resistance levels.

For now, 25,109 is the first key support level to watch on any pullback. As long as the index remains above that former swing area, buyers retain the near-term technical edge. A move back below 24,913 would weaken the bullish outlook and expose the 100-day moving average and the 38.2% retracement of the rally from the April low in the 24,707-24,736 area.

On the upside, the next target is near 25,580. Above that, traders will watch the 100-hour moving average at 25,799 and the 200-hour moving average at 25,898. Those moving averages remain key technical hurdles. If buyers can break above and stay above those levels, it would suggest that today’s rally is developing from a relief bounce into a more sustainable recovery.