US equities rallied sharply on Tuesday, with the S&P 500 climbing 3% and the Nasdaq Composite jumping 3.5%, after reports that Iranian President Masoud Pezeshkian is willing to consider ending regional hostilities under certain security guarantees. The Dow Jones Industrial Average advanced 2.6%—its strongest session since May—as investors responded to potential de-escalation initiatives by President Trump, despite the continued closure of the Strait of Hormuz.
The relief rally was not enough to offset an otherwise turbulent month: the S&P 500 finished March down 5.3%, its weakest monthly showing since 2022. Energy markets remained a key source of volatility. Brent crude settled at $118 per barrel after a strike on a Kuwaiti tanker, while WTI futures ended the session lower at $101.
Technology stocks led the broader recovery, with Nvidia gaining 5.6% and Microsoft rising 3.1%.
