March Ends on a High Note for Stocks

Buying ahead of Q2 signals optimism on Iran crisis resolution

Apr. 1, 2026 at 12:51am

The stock market staged a strong comeback on the final trading day of March, with the Dow gaining over 1,100 points, the S&P 500 up nearly 3%, and the Nasdaq surging almost 4%. This came after a dismal month and quarter overall, as investors displayed some optimism that the Iran crisis could be resolved sooner than later.

Why it matters

The market's performance in March was closely tied to developments in the Iran conflict, with stocks rallying when President Trump signaled de-escalation but falling when he suggested otherwise. The strong finish to the quarter suggests investors are hopeful the crisis can be resolved, which would provide more stability for the markets going forward.

The details

Key economic data released on the final trading day of March included the JOLTS report showing job openings declined slightly in February, the Chicago Business Barometer dropping more than expected, but consumer confidence surprisingly improving. Earnings reports from NIKE and RH (Restoration Hardware) also factored into the market's movements.

  • March 2026 was shaping up to be the worst trading month in four years.
  • The final trading day of Q1 2026 saw a major market rally.

The players

President Trump

The President's statements on the Iran conflict have had a significant impact on the stock market's performance.

Sheraz Mian

Zacks' Director of Research, who highlighted a little-known satellite communications firm as a top stock pick with the potential to double.

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What’s next

Investors will be closely watching for any further developments in the Iran conflict, as well as economic data and earnings reports, to gauge the market's direction in the coming weeks.

The takeaway

The stock market's strong finish to a dismal quarter suggests investors are hopeful the Iran crisis can be resolved, providing more stability for the markets going forward. However, the market's performance will continue to be heavily influenced by geopolitical factors as well as economic and earnings data.