U.S. stock markets surged on Tuesday as investors reacted with optimism to potential de-escalation in the Iran conflict, driving significant gains across the S&P 500, Dow, and Nasdaq indices.

Key Points

• The S&P 500 rose 2.9%, the Dow gained 2.5%, and the Nasdaq climbed 3.8% following positive geopolitical developments.
• CoreWeave shares jumped 12% after the Nvidia-backed company secured an $8.5 billion loan backed by graphics processing units.
• Super Micro Computer faces investor exodus and "uninvestable" status following a series of internal operational failures.
• Kansas City Fed President Jeff Schmid warned that the current oil price shock should influence the Federal Reserve's broader inflation strategy.
• European Central Bank President Christine Lagarde challenged U.S. Treasury Secretary Scott Bessent’s assessment that the economic impact of the Iran conflict would be brief.

Why it Matters

The market rally reflects high sensitivity to geopolitical tensions and their subsequent impact on global energy prices and inflation expectations. Investors are now closely monitoring upcoming labor market data and consumer spending reports to gauge the resilience of the economy heading into the second quarter.