U.S. stocks closed sharply higher on Tuesday, with all three major indices posting their largest single-day gains since May of last year, boosted by signs of de-escalation in Middle East tensions. At the close, the Dow Jones Industrial Average surged by 1,125.37 points, or 2.49%, to finish at 46,341.51. The Nasdaq Composite jumped 795.99 points, or 3.83%, to settle at 21,590.63. The S&P 500 climbed 184.80 points, or 2.91%, ending the session at 6,528.52.

Despite the strong intraday rebound, the three major U.S. stock indices still recorded losses for the month of March and the first quarter overall. The S&P 500 fell 5.1% in March, marking its worst monthly performance since 2022. Over the same period, the Dow declined 5.4%, halting a 10-month winning streak, while the Nasdaq dropped 4.8%.

For the first quarter, the Nasdaq led the declines among the major indices, falling more than 7%. The S&P 500 declined 4.6%, and the Dow decreased by 3.6%.

Leading technology stocks showed broad strength. Meta Platforms rose 6.67%, NVIDIA advanced 5.62%, Alphabet (Google) gained 5.14%, Tesla increased 4.64%, Amazon climbed 3.66%, Microsoft added 3.12%, and Apple finished 2.90% higher.

The technology sector received a significant boost, with the Technology Select Sector SPDR Fund (XLK) rising 4.24%. Oracle closed up 5.99%. The company informed employees on Tuesday of a new round of layoffs affecting thousands of workers.

The Nasdaq Golden Dragon China Index advanced 2.80%. Within the index, Alibaba Group rose 2.85%, JD.com gained 2.18%, and NetEase increased 1.74%.

Investor sentiment was lifted by signals interpreted as positive indications that the current phase of conflict could be nearing an end. The NYSE Tick index, which measures the difference between advancing and declining stocks, briefly reached a record high.

However, analysts cautioned that the situation remains highly uncertain. A key unresolved issue for the markets is the timeline for the reopening of the Strait of Hormuz. It is difficult to imagine Iran making concessions without receiving any in return.

According to federal funds rate futures data, traders now see a 75% probability that interest rates will remain unchanged for the rest of the year. The yield on the 10-year U.S. Treasury note fell approximately 3 basis points to 4.32%.

On the economic data front, the U.S. Consumer Confidence Index for March edged up to 91.8, slightly better than market expectations. However, job openings fell to 6.88 million in February, a decrease of 358,000 from the previous month, signaling a potential cooling in the labor market.

In oil markets, Brent crude futures settled 4.94% higher at $118.35 per barrel, their highest close since June 2022. In contrast, WTI crude futures fell 1.46% to settle at $101.38 per barrel. Brent surged 63% in March, its largest monthly gain since 1988, while WTI rose 51%, marking its biggest monthly increase since May 2020.

In precious metals, spot gold rose 3.49% to $4,668.20 per ounce in late New York trading. For March, gold fell 11.58%, but it posted a 4.90% gain for the first quarter.