The S&P 500 (^GSPC +2.91%) jumped 2.91% to 6,528.52, the Nasdaq Composite (^IXIC +3.83%) surged 3.83% to 21,590.63, and the Dow Jones Industrial Average (^DJI +2.49%) climbed 2.49% to 46,341.51 in a broad relief rally on Iran de-escalation hopes.
Market movers
Microsoft (MSFT +3.06%), Nvidia (NVDA +5.56%), and Meta Platforms (META +6.64%) led big-tech gains as easing war worries boosted growth stocks. Marvell Technology (MRVL +12.84%) surged 12.80% to close at $99.05 on news that Nvidia would invest $2 billion in the company.
Unilever (UL 5.02%) and McCormick (MKC 6.11%) declined on skepticism around a proposed $65 billion food deal.
What this means for investors
U.S. stocks ended a downward streak today after Iranian President Masoud Pezeshkian showed a willingness to negotiate. In the last five weeks, Iran-war headlines have driven daily market volatility. All three major indexes rallied today, which could be the beginning of a recovery, but much depends on the negotiations ahead.
Energy stocks have soared this quarter. The S&P Energy Index gained 39% year-to-date, while the S&P 500 Information Technology Index has fallen 13%. This shows the immediate impact of high oil prices. Analysts suggest that prices may retreat slightly when the conflict ends, but the sector is likely to continue to perform well over time.
Meanwhile, now may be an opportunity to buy several oversold tech stocks. Some high-growth names have struggled, weighed down by risk-off sentiment and questions about AI valuations. Watch upcoming earnings and economic data for broader growth signals.
JPMorgan Chase is an advertising partner of Motley Fool Money. Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends JPMorgan Chase, Marvell Technology, McCormick, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends Unilever. The Motley Fool has a disclosure policy.