Wall Street closed sharply higher on Tuesday, driven by tech and discretionary stocks. Investor mood was upbeat on reports suggesting that President Trump had signaled a willingness to end the Iran conflict, even if the Strait of Hormuz remained largely closed. All three benchmark indexes ended in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 2.5%, or 1125.37 points, to close at 46,341.51. Twenty-five components of the 30-stock index ended in positive territory, while five ended in negative.

The tech-heavy Nasdaq Composite added 795.99 points, or 3.8%, to close at 21,590.63.

The S&P 500 gained 184.8 points, or 2.9%, to close at 6,528.52. Nine of the 11 broad sectors of the benchmark index closed in the green. The Communication Services Select Sector SPDR (XLC), the Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) advanced 4.4%, 4.2%, 3.3% respectively, while the Energy Select Sector SPDR (XLE) declined 1.1%.

The fear gauge CBOE Volatility Index (VIX) decreased 17.5% to 25.25. A total of 22.4 billion shares were traded on Tuesday, higher than the last 20-session average of 20.3 billion. Advancers outnumbered decliners by a 5.2-to-1 ratio on the S&P 500. The S&P 500, Nasdaq and the Dow Jones posted their largest single-day gains since May 2025.

Wall Street Rallies on Hopes of Middle East De-escalation

Wall Street closed sharply higher on Tuesday as optimism grew over a possible de-escalation in the Middle East conflict, which had recently driven oil prices higher and stoked global inflation fears. Sentiment improved after a The Wall Street Journal report said Donald Trump was open to ending the military campaign against Iran, even if the Strait of Hormuz stays largely closed.

All three major U.S. indexes rallied strongly, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average marking their biggest single-day gains in months. Technology and consumer discretionary stocks outperformed, supported by easing concerns over inflation and interest rates. Lower bond yields boosted demand for growth stocks, while hopes of stable energy prices improved the outlook for consumer spending, lifting discretionary shares.

Chip Stocks Surge in Strong Recovery Session

The PHLX Semiconductor Sector Index (SOX) surged 6.24%, its strongest session in nearly a year, rebounding after a sharp decline in the previous session as investors returned to chip stocks amid improving market sentiment.

Consequently, shares of NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) and NXP Semiconductors N.V. (NXPI Quick QuoteNXPI - Free Report) added 5.9% and 5.1%, respectively. While NVDA sports a Zacks Rank #1 (Strong Buy), NXPI has a #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.

Monthly Roundup

Wall Street closed the month of March sharply lower. The Dow Jones Industrial Average was down 5.4%, the S&P 500 fell 5.1%, and the Nasdaq Composite lost 4.8%, their worst month since late 2022. Losses were due to Iran conflict-led oil spikes and inflation fears, with a late-month rally failing to offset declines.

Quarterly Roundup

In the quarter ended March 31, 2026, the Nasdaq Composite fell 7.1%, the S&P 500 dropped 4.6% and the Dow Jones Industrial Average declined 3.6%, pressured by Middle East tensions, elevated oil prices, persistent inflation, rising bond yields and uncertainty over Fed policy.

Economic Data

Per S&P Global data, Case Shiller Home Prices for 10-City Composites remained flat for January. The 20-City Composite decreased 0.1%.

Per the Conference Board, U.S. Consumer Confidence for March rose to 91.8 against a consensus of 87.5. The number for February remained unrevised at 91.2.