US equities closed sharply higher on Tuesday as the S&P 500 gained 3% and the Nasdaq Composite surged 3.5% following reports that Iranian President Masoud Pezeshkian is open to ending regional hostilities under specific guarantees. The Dow Jones Industrial Average jumped 2.6% to mark its best session since May as investors reacted to potential de-escalation efforts by President Trump despite the ongoing closure of the Strait of Hormuz. This relief rally failed to erase a volatile month where the S&P 500 concluded March with a 5.3% decline representing its worst monthly performance since 2022. Energy markets remained a primary driver of this turbulence as Brent crude settled at $118 following a strike on a Kuwaiti tanker while WTI futures settled lower at $101. Technology shares led the broader recovery with Nvidia climbing 5.6% and Microsoft advancing 3.1%.