US Stocks Surge 2% as Trump Postpones Strikes on Iranian Infrastructure

US Stocks Experience Significant Gain on 23 March

The S&P 500 index surged 2.23% to reach an intraday high of 6,651, marking its biggest single-day gain since 6 February. The Dow Jones and Nasdaq-100 also gained 2.5% and 2.4%, respectively, at their intraday highs. The Russell 2000, a small-cap index sensitive to higher interest rates, rose 2.9%, ending its correction territory and confirming its entry into a new phase.

Key Economic Events

• US President Donald Trump announced that he had ordered the military to postpone strikes against Iranian power plants following "productive conversations" with Tehran.
• Trump also extended the deadline for Iran to reopen the Strait of Hormuz, a key chokepoint controlled by Iran since the war.
• The US-Iran conflict entered its fourth week, triggering massive selling across global markets.

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Market Reaction

The sharp pullback in oil prices, with Brent crude futures slumping 14.43% to hit an intraday low of $96 per barrel, boosted cyclicals and airline stocks. American Airlines and United Airlines rose over 5% each, while Carnival Corp, Norwegian Cruise Line Holdings, and Viking Holdings gained over 7%. JPMorgan Chase and Goldman Sachs rebounded 1.7% and 3%, respectively.

Sector Performance

• S&P 500 Banking index: gained 1.8%
• Consumer discretionary stocks: rose 3%
• Technology stocks: gained over 2% with Palantir jumping 4.57% to $157.56

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Laggard Stocks

• Enphase Energy: fell 5.35% to $41.75
• Micron Technology: declined 4.17% to $405
• Fair Isaac, Seagate Technology, Domino’s Pizza, and Western Digital: traded lower by more than 2%