Dow Jumps 1,000 Points on Iran War-End Hopes

Stocks rallied Tuesday as fresh reports fueled investor optimism that the U.S.-Iran conflict could be nearing an end.

The Dow Jones Industrial Average was up by 1,042 points, or 2.31% as of 3 p.m. EST. The S&P 500 rose 2.66%, while the Nasdaq Composite jumped 3.60%, or 749 points.

Sentiment improved following an unconfirmed report that Iranian President Masoud Pezeshkian may be open to ending hostilities under certain conditions, as CNBC reported. Similar remarks earlier this month called for recognition of Iran’s rights, reparations, and guarantees against future aggression.

Adding to the optimism, The Wall Street Journal reported that President Donald Trump signaled willingness to halt military action even if the Strait of Hormuz remains partially closed. The New York Post separately reported Trump expects the conflict to wind down soon, with other nations stepping in to help reopen the key shipping route.

Technology stocks led the rebound after recent weakness tied to the conflict. The Technology Select Sector SPDR Fund (XLK) gained nearly 2%, with Nvidia up more than 3% and Microsoft rising over 1%.

“Any steps toward ending the war overall, the stock market likes—that’s driving this relief rally,” said Eric Diton, president of The Wealth Alliance. He cautioned, however, that unresolved oil disruptions remain a risk.

Oil markets were volatile. Brent crude rose about 5% to above $118 per barrel, while West Texas Intermediate slipped roughly 1% to just over $101. Prices stayed elevated after reports that Iran struck a Kuwaiti oil tanker near Dubai, though officials said all crew members were safe.

Despite Tuesday’s gains, major indexes remain under pressure. The Nasdaq is still in correction territory, more than 10% below its recent high. The Dow and S&P 500 are down over 8% and 7%, respectively.

March has been a difficult month for equities. The S&P 500 is down more than 5%, on track for its worst monthly performance since 2022. The Dow and Nasdaq have also fallen more than 5%, with the Dow poised to snap a 10-month winning streak.

For the quarter, losses are also mounting: the Nasdaq has dropped more than 7%, the S&P 500 about 5%, and the Dow roughly 4%.