Global Markets Rally as US‑Iran Tensions Ease
By Prime Research | Updated at: Apr 1, 2026 10:53 AM IST
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Washington is signalling that military operations could wrap up within two to three weeks, with President Trump suggesting the United States may soon begin scaling back its role in the Strait of Hormuz security architecture.
President Trump is scheduled to address the American nation on Iran at 7:30 a.m. IST on Thursday, April 2. The address is expected to outline the administration’s next steps in its Iran strategy and will be closely watched by markets.
Iranian President Pezeshkian has declared that Tehran is prepared to end hostilities with the United States, though it is seeking firm guarantees before doing so.
Iran has also issued a sharp warning that prominent American corporations could face retaliation if Iranian figures continue to be killed.
U.S. stocks posted their best single-day gains since May after reports emerged that the Iranian President signalled willingness to negotiate an end to the conflict, and President Trump indicated the U.S. would be ‘leaving’ Iran ‘very soon.’
The Dow Jones surged over 900 points (+2.49%), the S&P 500 jumped 2.91%, and the Nasdaq soared 3.83% — though all three indices still closed Q1 sharply in the red, with the Nasdaq down 10.5%, S&P 500 down 7.3%, and the Dow off 5.9% for the quarter.
Technology stocks drove the bulk of Tuesday’s relief rally, with the S&P 500 tech index rising over 2% as investors rotated back into growth names after weeks of defensive positioning.
Marvell Technology soared over 12% after announcing a $2 billion expanded partnership with Nvidia, while CoreWeave climbed 8.4% on news of an $8.5 billion AI infrastructure loan, and Meta Platforms surged nearly 7%, lifting the communication services sector.
The U.S. Dollar Index (DXY) fell toward the critical 100 level as peace prospects reduced the greenback’s safe-haven appeal, helping EUR/USD snap a five-day losing streak to trade near $1.16.
February’s hiring rate fell to 3.1% — the slowest pace since the onset of the pandemic and the weakest reading since 2011 — with total U.S. hires dropping to 4.8 million, down 387,000 from a year earlier.
Nifty ended Monday’s session near lows, down 488 points at 22,331, its lowest close since April 7, 2025. On the downside, the 21700-21900 band is likely to act as immediate support. On the upside, 22,800 is the immediate hurdle for the recovery attempt.
Indian markets are poised to open around 1.5% higher, tracking a Wall Street rally, on optimism that the war that has jolted global markets and disrupted energy supplies may be nearing a conclusion.
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