U.S. stock indices saw significant gains, with the communication services and technology sectors leading the advance. At the close, the Dow Jones Industrial Average rose 2.49%, the S&P 500 increased 2.91%, and the Nasdaq Composite climbed 3.83%. For the month of March, U.S. crude oil futures surged over 50%, while Brent crude recorded its largest monthly gain since 1988. European stock indices also closed higher on March 31.
International gold and silver prices advanced on Tuesday. By the close, June gold futures on the COMEX division of the New York Mercantile Exchange settled at $4,678.60 per ounce, up 2.66%. May silver futures ended at $74.919 per ounce, gaining 6.16%.
U.S. equities rose sharply on March 31, driven by reports that the U.S. President expressed willingness to end military actions against Iran, while Iran's President indicated openness to concluding the conflict if security guarantees were met. This boosted investor optimism about a potential near-term resolution to Middle East tensions, encouraging capital flow into risk assets like stocks. The communication services and technology sectors were among the top performers.
Among individual stocks, NVIDIA led large-cap tech gains with a nearly 5.6% increase. The company announced a $2 billion investment in Marvell Technology, integrating the semiconductor firm into NVIDIA’s AI ecosystem. The two companies also plan to collaborate on silicon photonics technology to support AI computing infrastructure development. Marvell Technology’s stock surged 12.8% on the news.
Additionally, Oracle saw its shares rise nearly 6% as the company plans a new round of large-scale layoffs, potentially affecting thousands of employees, in response to cash flow pressures from expanding AI data centers.
Despite the day's gains, U.S. indices posted significant losses for March. The Dow and S&P 500 fell 5.38% and 5.09%, respectively, while the Nasdaq Composite declined 4.75%.
European markets also ended higher on Tuesday, with the FTSE 100 up 0.48%, the CAC 40 rising 0.57%, and the DAX gaining 0.52%. However, all three indices experienced sharp declines for the month, with UK stocks down over 6.7%, French equities falling 8.9%, and German shares dropping 10.3%.
Rising energy prices have significantly boosted inflation in the Eurozone. Preliminary data showed the region’s Consumer Price Index rose 2.5% year-over-year in March, up from 1.9% in February and exceeding the 2% target. Energy prices, which jumped 4.9%, were the main driver.
Consumer goods giant Unilever announced a three-month global hiring freeze due to external uncertainties and plans to merge part of its food business with American spice brand McCormick. The company cited rising costs for chemical and plastic resin materials, affected by Middle East instability, as a contributing factor. Unilever’s London-listed shares fell 7.28%.
Oil prices were mixed on March 31. Supply concerns persisted due to disruptions in shipping routes near the Strait of Hormuz and ongoing Middle East tensions. However, prices pared gains after Iran signaled openness to ending hostilities. At settlement, May WTI crude fell 1.46% to $101.38 per barrel, while May Brent crude rose 4.94% to $118.35 per barrel.
For the month, WTI futures surged 51.27%, marking the best monthly performance since May 2020. Brent crude jumped over 60%, its largest monthly gain since 1988.
A Reuters survey indicated that OPEC's crude oil production fell to 21.57 million barrels per day in March, the lowest since June 2020, due to output cuts by some Gulf producers.
Gold and silver prices rose on Tuesday, supported by safe-haven demand amid fluctuating Middle East tensions and a weaker U.S. dollar.
Despite the daily gains, both metals posted substantial losses for March. Gold futures fell 10.85%, the first monthly decline in nine months and the largest since June 2013. Silver futures dropped 19.69%, the worst monthly performance in nearly 15 years. Analysts noted that rising energy prices fueled inflation concerns, reinforcing expectations of central bank rate hikes. Additionally, some investors sold gold to raise liquidity during market volatility, adding downward pressure on precious metal prices.
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