Traders work on the floor of the New York Stock Exchange during morning trading on March 25, 2026 in New York City.
Michael M. Santiago | Getty Images
Stocks rose on Tuesday following new reports giving investors hope that the U.S.-Iran war could soon come to an end.
The Dow Jones Industrial Average was up 1,004 points, or 2.2%. The index had briefly surged above 1,100 points during the session after an unconfirmed report said Iranian President Masoud Pezeshkian was open to ending the war with guarantees. The S&P 500 gained 2.5%, and the Nasdaq Composite advanced 3.4%, with both on pace for their best day since May.
To be sure, Pezeshkian made similar remarks earlier this month, saying in a post on X that the “only way to end this war — ignited by the Zionist regime & US — is recognizing Iran’s legitimate rights, payment of reparations, and firm int’l guarantees against future aggression.”
The Wall Street Journal reported that President Donald Trump had told aides he was willing to end military hostilities in the Middle East even if the Strait of Hormuz remained largely shut. The New York Post later reported the president said he believes the Iran war will likely end soon, with other nations taking the lead in reopening the Strait of Hormuz.
Technology, which has been under pressure since the conflict began, rose broadly. The Technology Select Sector SPDR Fund (XLK) traded almost 2% higher. Nvidia climbed more than 3%, and Microsoft advanced more than 1%.
“Any steps toward ending the war overall, the stock market likes, and so, you are getting that relief rally,” said Eric Diton, president at The Wealth Alliance. “But no, we’re not out of the woods.”
“The bottom line is, if we haven’t solved the oil problem, then that continues to put pressure,” Diton added.
Crude prices remained higher after Bloomberg reported that Iran struck a Kuwaiti oil tanker in Dubai waters. The Dubai government’s media office said in a post on X that no injuries were reported and that “the safety of all 24 crew members has been secured.”
Brent crude futures were last up 5% to trade above $118 per barrel. However, West Texas Intermediate futures were last lower by 1% to above $101 per barrel.
Brent crude futures, YTD
The Nasdaq remains in a correction, more than 10% off its recent high. The Dow and the S&P 500 are down by more than 8% and 7%, respectively.
Tuesday marks the final day of the month. The S&P 500 is down more than 5% in March. If that decline holds, it would be the benchmark’s worst monthly performance since 2022. The Dow as well as the Nasdaq have also fallen more than 5%, and the former is set to snap a 10-month winning streak.
The major averages are likewise on pace to post a losing quarter. The Nasdaq is leading the way among the three indexes in losses for the period, shedding more than 7%. The S&P 500 has lost 5%, and the Dow has dropped about 4%.
Correction: An earlier version said that the three major averages declined in Monday’s session. Only the S&P 500 and the Nasdaq Composite booked losses.
