U.S. stocks surged on Tuesday as reports that President Trump is willing to end the military campaign in Iran triggered a wave of buying across every major sector. The news sent oil prices retreating from recent highs and pushed the fear gauge sharply lower, giving investors their best session in weeks and snapping a streak of conflict-driven volatility.
The tech-heavy Nasdaq Composite led the charge, soaring 795.99 points, or 3.83%, to close at 21,590.63. The S&P 500 climbed 184.80 points, or 2.91%, finishing at 6,528.52, while the Dow Jones Industrial Average jumped 1,125.37 points, or 2.49%, to settle at 46,341.51. The CBOE Volatility Index (VIX), widely regarded as Wall Street’s fear gauge, plunged more than 17% to 25.12, signaling a meaningful return of investor confidence. U.S. crude oil, which has spiked nearly 50% since the start of the conflict, pulled back to around $102 a barrel on the prospect of a diplomatic resolution.
Notable Movers
Large-cap technology names powered the rally. Nvidia (NASDAQ:NVDA) and Amazon (AMZN) each gained roughly 5%, while Microsoft (MSFT) and Meta Platforms (META) added about 3% apiece as investors rotated back into growth stocks that had been punished during the recent sell-off.
Eli Lilly (NYSE:LLY) rose approximately 3% after announcing a deal to acquire Centessa Pharmaceuticals (CNTA) for up to $7.8 billion, or $38 per share upfront with potential milestone payments bringing the total to $47 per share. The acquisition gives Lilly a pipeline of sleep-wake disorder treatments, including a promising narcolepsy drug.
McCormick (MKC) fell about 7% despite reporting a Q1 earnings beat. The spice maker announced a blockbuster $44.8 billion merger with Unilever’s food business, combining brands like Hellmann’s and Knorr with McCormick’s Frank’s RedHot and Cholula. Investors appeared concerned about the deal’s size and integration risk, with Unilever shareholders set to own 55% of the combined entity.
After the closing bell, Nike (NKE) reported fiscal Q3 results that topped expectations. Revenue came in at $12.4 billion versus estimates of $12.1 billion, while earnings per share of $0.98 beat the $0.89 consensus. North American sales grew 6%, returning to growth for the first time in eight quarters — a sign that CEO Elliott Hill’s turnaround strategy is gaining traction.
Looking Ahead
Investors will be watching closely for any follow-through on the Iran peace talks, which remain the dominant force driving sentiment. A concrete ceasefire agreement could provide further relief for energy prices and unlock more upside for equities. On the economic calendar, the first trading day of April brings the ISM Manufacturing Index, which will offer a fresh read on whether the industrial economy is holding up under the weight of elevated oil costs and tariff uncertainty. Nike’s after-hours beat could also set a positive tone for Wednesday’s open, particularly for the consumer discretionary sector heading into earnings season.