Finance
Q1 Ends With a Bang!
Published by Global Banking & Finance Review®
Posted on March 31, 2026
5 min readLast updated: March 31, 2026
Add as preferred source on GoogleGlobal Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 31, 2026
5 min readLast updated: March 31, 2026
Add as preferred source on GoogleWall Street surged on March 31, 2026, buoyed by hopes for de-escalation in the Iran conflict even as U.S. job openings and hiring fell sharply, while gasoline prices topped $4 per gallon for the first time since 2022.
By Jamie McGeever
ORLANDO, Florida, March 31 (Reuters) - Wall Street closed a tumultuous first quarter with a bang on Tuesday as hopes of de-escalation in the Middle East powered stocks to their best day in almost a year, even as data showed a slump in U.S. job openings and hirings.
In my column today I look at the parallels between now and 2021-2022, the last time central banks faced a serious global supply shock. They acted in unison to tackle inflation then, if a little belatedly. There's unlikely to be as much cohesion this time around.
If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
Tuesday's surge on Wall Street was extraordinary, and not just because the big three indices had their best day since May last year. Remarkably, the moves on the S&P 500 and Dow were the biggest since the Iran war started, meaning they clocked a 2% up day before a 2% down day.
This can be looked at in a few ways. It shows how keen investors are for the war to end so they can load up on risky assets. Or it shows they underestimate the damage already done, lingering risks even if hostilities cease tomorrow, and the potential for prolonged conflict. Or, it was just quarter-end position squaring.
The first quarter of 2026 closed on Tuesday, and what a three months it has been. Brent crude had its biggest rise since the first Gulf War; European LNG rose 80%; the "Mag 7" megacaps slumped 13%; March was the worst month for world stocks since September 2022, with $8 trillion market cap lost.
The volatility sparked by the Middle East conflict is summed up perfectly by South Korea's KOSPI index. It ended the quarter up 20% but also in a bear market, as its close on Tuesday was down 20% from February 27 peak, the day before the U.S. and Israel attacked Iran. Buckle up for Q2!
Traders often cite "psychological" price levels in markets as magnets for activity - round numbers, big numbers, new highs or lows. On Main Street, the break of big price levels can have political reverberations, which is happening with U.S. gas prices right now.
The average price of gasoline is now above $4 per gallon for the first time since 2022, up 35% since the Iran war started. This is potentially damaging for President Donald Trump, whose approval rating is tanking. There's a long way until the midterms in November, but high and rising gas prices aren't a vote winner.
Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here.
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(Reporting by Jamie McGeever; Editing by Nia Williams)
Wall Street rallied at the end of Q1 2026 driven by hopes of de-escalation in the Middle East, resulting in the best day for major indices in almost a year.
The Middle East conflict led to significant market volatility, including sharp rises in crude oil and European LNG prices and large swings in global stock indices.
U.S. gasoline crossed $4 per gallon, which is politically and economically sensitive, potentially affecting President Trump’s approval ratings and overall consumer sentiment.
Tech and communication services rose over 4%, while industrials and consumer discretionary gained more than 3%. Energy was the only sector down.
A slump in U.S. job openings and hirings contributed to uncertainty, with investors also monitoring central bank reactions to supply shocks and inflation.
Explore more articles in the Finance category
