US stocks and bonds moved higher on Tuesday as investors reacted to signs that the United States could scale back its military campaign against Iran. Market sentiment also improved after new data showed consumer confidence rose in March. Oil stayed high, gold advanced, and investors continued to watch developments around the Strait of Hormuz.

Stocks and Bonds Move Higher

US equities rose in morning trading as markets recovered part of the losses seen earlier in March. The S&P 500 gained about 1%, while the NASDAQ 100 rose 1.1%. The Dow Jones Industrial Average added 0.6%. In Europe, the Stoxx Europe 600 climbed 0.4%, and the MSCI World Index rose 0.8%.

Bond markets also strengthened. The yield on the 10-year US Treasury fell three basis points to 4.32%. Britain’s 10-year yield declined two basis points to 4.92%, while Germany’s 10-year yield was little changed at 3.03%. Lower yields pointed to stronger demand for government bonds as traders responded to changes in oil prices and war-related developments.

Markets also tracked comments linked to the war in Iran. Reports said President Donald Trump was willing to bring the US campaign to an end even if the Strait of Hormuz remained largely closed. This eased some pressure on equities, although uncertainty around oil supply remained in place.

Bespoke Investment Group said, “Sometimes the headlines make you scratch your head.” The firm added, “If the US just walked away from the Middle East with the Strait still blockaded, energy markets would likely remain incredibly supply-constrained, keeping prices high.”

Oil, Gold and Currencies Remain Active

Oil remained one of the main drivers for markets as the conflict entered its second month. West Texas Intermediate crude rose 1.4% to $104.34 a barrel. Brent traded near $107 a barrel after a sharp climb since the conflict began. Even with some price swings, crude remained near multiyear highs.

Gold also rose as investors sought safety during the conflict. Spot gold gained 1.9% to $4,598.16 an ounce. In currency markets, the Bloomberg Dollar Spot Index fell 0.2%. The euro rose 0.5% to $1.1518, the British pound gained 0.2% to $1.3206, and the Japanese yen strengthened 0.3% to 159.25 per dollar.

Trump also made public comments on oil supply routes. In a social media post, he said countries that need oil supplies should “go to the Strait and just TAKE IT.” He also said the US “won’t be there to help you anymore.”

The continued closure of the Strait of Hormuz kept traders focused on shipping risks and fuel costs. One strike reportedly hit a fully loaded oil tanker, adding to supply concerns across global energy markets.

Economic Data and Company Deals Draw Attention

Fresh US data added another layer to Tuesday’s trading. Consumer confidence unexpectedly increased in March, suggesting a more stable view of business and labor conditions. At the same time, job openings fell and hiring slowed in February, showing labor demand had cooled before the latest phase of the conflict.

Bret Kenwell of eToro said, “There do appear to be some early signs of stabilization in both consumer confidence and job openings after a clear fourth-quarter downtrend.” He also said investors are now looking ahead to Friday’s jobs report for more signs on the labor market.

Company announcements also remained in focus:

• NVIDIA said it invested $2 billion in Marvell Technology as part of a silicon photonics partnership.

• CoreWeave raised $8.5 billion to expand its cloud computing capacity.

• Eli Lilly agreed to buy Centessa Pharmaceuticals in a deal worth up to $7.8 billion.

• Biogen agreed to acquire Apellis Pharmaceuticals for $5.6 billion.

• Unilever agreed to combine its food business with McCormick in a $44.8 billion deal.

• The US Food and Drug Administration said Amgen’s drug Tavneos has been linked to serious liver injuries and eight deaths.

Investors are now watching upcoming labor market data, oil price moves, and further developments in the Middle East as March trading comes to a close.

Also Read: US Stock Market Today: S&P 500 Gains, Treasury Yields Drop as US Pushes 15-Point Iran Peace Plan