Wall Street opened sharply higher on Tuesday, March 31, with all three major indices posting gains of more than one per cent. The catalyst? A report suggesting President Trump is willing to end the ongoing US-Iran conflict — a development that markets had been waiting for, having spent much of the past month absorbing the economic pain of surging oil prices and military uncertainty.
Why Is the Stock Market Up Today?
The primary driver of today’s rally is a report indicating that President Trump has told aides he is open to ending the US-Iran war, even if the Strait of Hormuz remains partially blocked. The Strait of Hormuz is the narrow waterway through which roughly 20 per cent of the world’s oil supply passes, and its disruption has been a key factor in the dramatic rise in crude oil prices over recent weeks.
At the time of writing, the S&P 500 is up 1.12% (71 points), the Dow Jones Industrial Average has gained 1.14% (512 points), and the Nasdaq Composite is 1.09% higher (252 points). It is the kind of broad-based rally that suggests genuine investor optimism rather than short-covering or sector-specific rotation.
The Context: A Brutal Month for Markets
Today’s gains need to be understood against the backdrop of what has been a deeply challenging month. March 2026 has seen stocks battered by the twin pressures of the US-Iran conflict and the resulting surge in crude oil prices, which pushed the average price of petrol in the United States to $4 per gallon for the first time since 2022. All three major indices are on track for their worst monthly and quarterly losses since 2022 — so one good day, however welcome, does not erase the broader picture.
Federal Reserve and Jerome Powell’s Comments
Adding to the positive mood, Federal Reserve Chair Jerome Powell offered reassurance yesterday that the central bank does not intend to raise interest rates in response to the oil-driven inflation spike. Speaking at Harvard University, Powell said the inflation outlook remained “stable” from the Fed’s perspective, and that the current price pressures were being viewed as temporary rather than structural. For investors who had feared that high oil prices might force the Fed’s hand on rates, this was significant and welcome news.
Warren Buffett Weighs In on Apple
In a separate development drawing attention this morning, Warren Buffett told CNBC’s Becky Quick in an interview on Squawk Box that he sold Apple too soon and would consider buying more at the right price. “It’s not impossible that Apple would get to a price where we would buy a lot of it,” Buffett said — carefully qualifying the comment by noting this wouldn’t happen “in the current market.” Berkshire Hathaway’s relationship with Apple has been one of the most watched investment stories of the past decade, and any signal from Buffett about the stock draws immediate attention.
Novo Nordisk’s GLP-1 Subscription Push
In corporate news, Novo Nordisk announced the launch of multi-month Wegovy subscriptions — allowing eligible patients to lock in three, six or twelve-month supplies of the weight-loss injection or the newer Wegovy pill. The move is seen as a direct attempt to catch rival Eli Lilly in the fiercely competitive GLP-1 weight-loss drug market. Both stocks were moving on the news this morning.
What to Watch for the Rest of the Day
Markets will be watching closely for any further developments on the US-Iran situation, as well as any official statements from the White House or State Department. Geopolitical news moves quickly, and the rally could easily reverse if the peace reports turn out to be premature or if there is any escalation in the conflict. End-of-quarter portfolio rebalancing may also create additional volatility as the session progresses.
For now, though, investors are taking the morning’s headlines at face value — and enjoying a green open after a very tough few weeks.