TLDR
- The Dow Jones jumped over 1,000 points (2.4%) and the Nasdaq surged 3.4% on Tuesday
- Gains came after reports that the U.S. and Iran may be moving toward ending their ongoing military conflict
- Iran’s president said the country is “prepared to end” the war if given security guarantees
- President Trump told aides he may exit the campaign without fully reopening the Strait of Hormuz
- Oil prices fell sharply on the peace signals, with Brent crude dropping 2.8%
U.S. stocks posted some of their biggest single-day gains in months on Tuesday, March 31, 2026. The rally came as reports emerged that both the United States and Iran may be ready to wind down their ongoing military conflict.
The Dow Jones Industrial Average climbed 1,061 points, or about 2.4%, closing near 46,140. The S&P 500 rose 2.7% to around 6,496. The Nasdaq Composite led the charge, jumping 3.4% to close near 21,517.
The moves were sharp and sudden. The market spiked quickly around 12:34 p.m. ET before pulling back slightly, though gains held through the session.
The trigger appeared to be a pair of news reports. First, Iran’s state TV reported that President Masoud Pezeshkian said his country was “prepared to end” the war if the U.S. offered security guarantees.
BREAKING: Iran's President Pezeshkian says Iran is ready to end the war with the US but wants guarantees.
US stocks are surging on the news. pic.twitter.com/O1cePDFw6Q
— The Kobeissi Letter (@KobeissiLetter) March 31, 2026
Second, the Wall Street Journal reported that President Donald Trump was telling aides he might be open to ending the military campaign. The conflict had already lasted more than a month.
The Strait of Hormuz has been largely closed since the conflict began. That closure has pushed oil prices sharply higher and raised fears about a global recession.
Trump and his advisers reportedly concluded that reopening the strait fully would push the mission beyond his stated four to six-week timeline.
Oil Drops on De-Escalation Reports
Oil prices fell fast once the peace signals hit. Brent crude dropped 2.8% to $104.40 a barrel. West Texas Intermediate crude fell 2% to $94.09.
Lower oil prices tend to ease inflation fears, which helped lift broader market sentiment on Tuesday.
Monday’s session had been far less upbeat. Both the S&P 500 and Nasdaq had closed lower that day, while the Dow only barely moved into positive territory, just enough to exit correction territory.
Crypto Reacts to Risk-On Sentiment
Crypto markets also responded to the improved risk mood. Bitcoin and other digital assets tend to move with broader risk appetite, and Tuesday’s rally in equities brought buyers back.
The Nasdaq’s 3.4% gain was its strongest in recent weeks and dragged tech-linked assets higher across the board.
Tuesday marked the final trading day of the first quarter of 2026. Some traders noted the timing of the spike, suggesting end-of-quarter positioning may have added fuel to the move.
As of early afternoon ET, the S&P 500 stood at 6,491, the Dow at 46,038, and the Nasdaq at 21,458.
Trump has not made a formal statement on ending the conflict, and no ceasefire has been announced.
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