US stocks opened higher on Tuesday, boosted by reports that President Donald Trump is ready to end the military conflict with Iran. The Dow Jones Industrial Average jumped 498 points, while the S&P 500 and Nasdaq each rose more than 1% as investors saw glimmers of hope for peace in the Middle East.
The technology sector, previously battered by the war, began to show signs of recovery with giants such as Microsoft and Nvidia posting significant gains. The positive sentiment stemmed from Trump’s willingness to call off military strikes even though the issue of reopening the Strait of Hormuz is still not fully resolved.
Despite the stock market’s initial buoyancy, crude oil prices continued to soar, with Brent hitting $117 a barrel. This came after reports of Iran attacking Kuwaiti tankers in Dubai, which kept concerns about the security of the global energy supply chain high.
Analysts described the market volatility throughout March as a normal “reset.” The S&P 500 is set to end the month down 7.8%, its worst monthly performance since September 2022, but strategists say a 10% correction is normal in the long-term investment cycle.
The final days of March saw a struggle between positive diplomatic news and the reality of tensions on the ground. Investors are balancing hopes for a ceasefire with continued risk to energy assets that remain volatile.
