Dow Jones jumps 828 points in a single day! News of Iran peace talks sparked a major late-March rebound in U.S. stocks, with the Nasdaq surging 3.2%.

After a tumultuous and unsettling March, U.S. stocks fought hard on the last trading day to recoup some losses. On March 31, the Dow Jones Industrial Average rose 828 points (about 1.8%), the S&P 500 climbed 2.3%, and the Nasdaq Composite surged 3.2%, marking one of the strongest single-day performances in recent times.

During the session, there was even a more aggressive sprint: after unverified reports emerged that Iranian President Masoud Pezeshkian intended to end the war if guarantees were secured, the Dow briefly spiked by more than 1,100 points. Although the report was later called into question (Pezeshkian had also issued similar signals earlier this month, but the fighting did not stop as a result), the index pulled back slightly from its peak. Still, it closed while holding a substantial gain.

Two key signals driving the rebound

This rebound was driven mainly by two pieces of news. One was a report by The Wall Street Journal stating that Trump told his staff that even if the Strait of Hormuz remains largely closed, he is willing to end military actions against Iran, indicating that the U.S. side’s willingness to end the war through negotiations is higher than previously expected. The other was the aforementioned Iranian president’s peace-talk intentions, which warmed market expectations for easing tensions in the Middle East.

Along with the stock market’s rise, oil prices fell in tandem, and bond yields also declined—suggesting that the market is pricing a scenario in which the “war risk premium” compresses.

March ends on a high note: S&P 500 logs its worst monthly performance since 2022

Despite the big surge on the 31st, the entire month of March was still a disaster for U.S. stocks. With multiple factors battering the market—including the outbreak of the Iran war, intensifying energy concerns, rising inflation expectations, and a sharp retreat in expectations for Federal Reserve rate cuts—the S&P 500’s cumulative monthly decline set the worst single-month record since 2022.

Energy stocks had mixed performance during the month—oil services and drilling shares benefited as oil prices surged, but industries that are highly dependent on Middle East oil sources, such as airlines and shipping, continued to face pressure. Tech stocks also saw a clearer oversold rebound toward the end of the month, after the broader market pulled back sharply and peace-talk expectations heated up near month-end.

Uncertainty still hangs in the air

Market optimism remains fragile. On the same day, Trump also posted on Truth Social, threatening that if a peace agreement cannot be reached, he will completely destroy the Iranian power plants, oil wells, and the island of Q:ag—or K?ag, indicating that the direction of diplomacy and negotiations is hard to predict.

Analysts noted that until there are clear signals of a ceasefire in Iran’s conflict, every rally in the market may only be a temporary pause, and investors are still facing a high-volatility, high-uncertainty environment. Early April’s U.S. employment data and subsequent developments in the Middle East situation will be key things to watch in determining where the market heads next.

This article: Dow soars 828 points in a single day! Iran peace-talk news sparks a big late-March rebound in U.S. stocks, and the Nasdaq jumps 3.2%—first appears on Chain News ABMedia.