* Nike ( NKE ) slumps on forecast of surprise Q4 sales drop

* Intel ( INTC ) jumps on plans to buy back stake in Ireland

factory

* Space stocks gain after report SpaceX filed for

confidential IPO

(Updates with market close)

By Noel Randewich and Purvi Agarwal

April 1 (Reuters) - Wall Street ended higher on

Wednesday, with strong gains in Alphabet and other heavyweights,

after U.S. President Donald Trump suggested an end to the Middle

East conflict could be close.

The U.S. will be "out of Iran pretty quickly" and could

return for "spot hits" if needed, Trump told Reuters, hours

before he was scheduled to address the nation about the war.

"We have Trump's comments, which tend to change a bit," said

Thomas Martin, senior portfolio manager at Globalt Investments.

"Everybody's trying to guess as to what he really means by what

he's saying. The markets want it to be positive, they want the

war to be over."

Technology-related heavyweights rallied, with Alphabet

, Meta Platforms ( META ) and Amazon ( AMZN ) all

higher.

Wall Street has rallied for two straight days as investors

speculated that the U.S. and Israeli war on Iran will end soon.

Energy prices have spiked in the latest month, sparking fears of

global inflation, as the conflict choked the flow of oil through

the Strait of Hormuz.

Even after recent gains, the S&P 500 is trading at under 20

times expected earnings, its lowest earnings multiple in 10

months, according to LSEG data.

The PHLX chip index jumped for a second session.

SpaceX confidentially filed for an initial public offering,

a person familiar with the matter told Reuters, sending space

stocks higher.

Eli Lilly ( LLY ) rose after the U.S. Food and Drug

Administration approved the drugmaker's weight loss pill, to be

sold under the brand name Foundayo.

Intel ( INTC ) surged after it said it would buy back

Apollo's stake in its Ireland factory for $14.2 billion.

According to preliminary data, the S&P 500

gained 46.92 points, or 0.72%, to end at 6,575.44 points,

while the Nasdaq Composite gained 251.97 points, or

1.17%, to 21,842.59. The Dow Jones Industrial Average

rose 226.66 points, or 0.49%, to 46,568.17.

The CBOE Volatility Index, Wall Street's fear gauge,

slipped to its lowest in more than a week.

Oil prices fell sharply, and the S&P 500 energy index

slid almost 5% at its session low, its lowest in over a

week. Airline stocks rose.

Nike ( NKE ) slumped to its lowest in a decade after the

sportswear giant forecast a surprise drop in its fourth-quarter

sales.

ADP's national employment report showed private payrolls

increased steadily in March, while retail sales increased by the

most in seven months in February. U.S. manufacturing activity

picked up last month, according to the Institute for Supply

Management's gauge.

Nonfarm payroll figures for March will be in focus on

Friday, although U.S. markets will be closed for the Good Friday

holiday.

Due to increased fears of inflation, traders now believe it

is more likely the Federal Reserve will raise interest rates by

year-end than cut rates.