Market Summary: What Happened Last Weekend and What Awaits Us Today, March 24

Market Summary: What Happened Last Weekend and What Awaits Us Today, March 24:

Wall Street rebounds strongly… Oil collapses after Trump backs down on striking Iran, andmarkets breathe a sigh of relief.

US equities rallied sharply on Monday, recovering from recent losses as easing geopolitical tensions triggered a broad risk-on move across markets.

The Nasdaq Composite gained 1.4%, while the Dow Jones Industrial Average climbed 1.4%, adding more than 630 points. The S&P 500 rose 1.2%, snapping a four-week losing streak that had been driven by surging oil prices and heightened geopolitical risk.

The rebound followed comments from US President Donald Trump, who said military strikes against Iranian energy facilities would be postponed for five days after what he described as “productive talks.” The announcement eased immediate fears of supply disruption, although Iranian officials denied that any negotiations had taken place, underscoring ongoing uncertainty.

Energy markets saw a sharp reversal. West Texas Intermediate crude dropped around 10% to $88 per barrel after trading near $102 earlier in the session, while Brent crude fell back to $99 after briefly exceeding $114.

The pullback reflects a rapid unwinding of supply fears linked to potential disruption in the Strait of Hormuz, a critical artery for global energy flows.

Lower oil prices helped lift sectors sensitive to fuel costs, with airline stocks including Delta Air Lines, United Airlines, and American Airlines posting strong gains, alongside cruise operators.

The shift in sentiment also weighed on safe-haven assets. The US dollar index fell 0.6% to 99.10, while gold declined to around $4,410 per ounce.

US Treasury yields moved lower, with the 10-year yield easing to 4.34%, reversing earlier gains as investors rotated back into equities.

Technology stocks led the rebound, with Tesla rising 3.5% after recent weakness, alongside broader gains across the sector.

Market Outlook

Markets are likely to open with cautious optimism, supported by lower oil prices and a temporary easing of geopolitical tensions. The pullback in energy costs and yields creates a more supportive backdrop for equities, particularly growth and travel-related sectors.

However, the relief rally may prove fragile. The five-day delay in potential strikes does not resolve underlying tensions, leaving markets exposed to sudden reversals if the situation escalates again. Oil prices will remain a key barometer—any renewed spike could quickly reintroduce inflation concerns and pressure risk assets.

In the near term, investors will be watching closely for further developments between the US and Iran, as well as movements in bond yields and energy markets. While sentiment has improved, volatility is likely to remain elevated as markets continue to navigate a highly uncertain geopolitical environment.