The stock market had its best day since May 12, with a 2.9% surge after reports that President Donald Trump was willing to end the U.S. campaign against Iran, potentially easing inflationary pressures from higher oil prices. However, investors may be overestimating how quickly inflation from the historic jump in oil prices will subside. The hopes of an end to the war have helped reduce expectations for Federal Reserve rate hikes, with the central bank expected to maintain its overnight rate steady through the year-end. Despite this, oil prices remain elevated relative to where they were at the beginning of 2026. The Cboe Volatility Index (V.