U.S. Stocks End Tuesday Higher

(MENAFN) U.S. equities posted their sharpest single-session rally since May of last year on Tuesday, as Wall Street surged on mounting expectations that the ongoing war with Iran could be nearing its end.

The Dow Jones Industrial Average soared 2.49%, adding 1,125.37 points to settle at 46,341.51. The Nasdaq Composite led the charge with a 3.83% advance — equivalent to 795.99 points — closing at 21,590.63, while the S&P 500 climbed 2.91%, or 184.8 points, to finish at 6,528.52.

The Volatility Index (VIX), widely known as Wall Street’s “fear index,” plunged 17.51% to 25.25, reflecting a broad easing of investor anxiety.

The rally was fueled largely by reports indicating that U.S. President Donald Trump may be prepared to halt military operations against Iran, sparking widespread hopes of regional de-escalation. The ongoing conflict has strained global markets, particularly following the closure of the Strait of Hormuz, which sent shockwaves through the international economy.

In remarks cited by the New York Post, Trump stated Tuesday that the Iran war would not last “much longer,” adding that the Strait of Hormuz would reopen “automatically” when the U.S. withdraws.

Iranian Foreign Minister Abbas Araghchi struck a firm tone on Tuesday, clarifying that Tehran was not pursuing a ceasefire, but rather a comprehensive conclusion to hostilities across the region, with binding guarantees against future aggression and full compensation for war damages.

Against this backdrop, Brent crude oil retreated 3.8% to $103.29 per barrel as of 2035 GMT.

On the corporate front, Nvidia shares jumped more than 5.6% following the chipmaker’s announcement of a $2 billion strategic investment in Marvell Technology, aimed at integrating the Santa Clara-based firm into Nvidia’s AI factory and AI-RAN ecosystem via NVLink Fusion.

Microsoft, despite recovering 3.1% on Tuesday, recorded its worst first-quarter performance since the 2008 financial crisis, having shed 23% over the period.

On the economic data front, U.S. home prices ticked up 0.1% in January on a monthly basis, with annual gains remaining subdued. The Conference Board’s Consumer Confidence Index rose modestly by 0.8 points to reach 91.8 in March.

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