dailyloe.com – U.S. stock markets surged sharply higher on Tuesday, March 31st, driven by a report suggesting a potential de-escalation in U.S.-Iran tensions. The Dow Jones Industrial Average jumped 551 points, representing a 1.2% gain for the session. The broader S&P 500 index climbed 1.6%, while the tech-heavy Nasdaq Composite led with a 2.2% advance.
Investor sentiment shifted following a Wall Street Journal report indicating President Donald Trump’s willingness to end military hostilities. This news provided hope for a resolution even if the critical Strait of Hormuz remained obstructed. The report specifically fueled a broad rally in the previously pressured technology sector.
The Technology Select Sector SPDR Fund, tracked by the ticker XLK, traded 1.5% higher. Major components like Nvidia saw shares climb 1%, and Microsoft advanced 2%. Despite the equity rally, oil prices remained elevated due to ongoing regional incidents.
Bloomberg reported that Iran struck a Kuwaiti oil tanker in Dubai’s waters, though the Dubai media office confirmed no injuries. All 24 crew members were secured safely according to an official post on social media platform X.
Brent crude futures rose 4% to trade above $117 per barrel. West Texas Intermediate futures also advanced, gaining nearly 1% to surpass $103 per barrel. This price action highlighted persistent geopolitical risk premiums in energy markets.
The rally followed a mixed prior session where the S&P 500 and Nasdaq declined. Monday’s losses left the S&P 500 just over 9% below its recent closing high. Technology sector declines of more than 1% had primarily driven that pullback.
Market strategist Art Hogan of B. Riley Wealth Management provided context on the volatility. He suggested the recent pullback may reflect a typical market reset. Hogan noted that 10% corrections are normal and occur on average every two years.
Long-term investors should understand that equity volatility is the price paid for participation, Hogan told CNBC. His comments aimed to contextualize the market’s movements within a broader historical framework. The day’s gains provided a strong finish to the month of March.[]
Source: CNBC
