US stocks surged on 31 Mar as hopes grew that the US-Iran war could be nearing an end, with all three major indexes posting their best session since May.
Bitcoin, Crypto Stocks Rise as Iran Ceasefire Hopes Lift Risk Assets
1 April 2026 - 09:20 CEST
By Ana Pereira
The S&P 500 climbed 2.9% and the Nasdaq Composite advanced 3.8% on the day, though the gains did little to salvage what was a painful three months for equity
investors. The Dow Jones Industrial Average jumped 2.5%.
The rally followed reports that Iranian President Masoud Pezeshkian signalled Tehran was willing to negotiate an end to the conflict. US Defence Secretary Pete Hegseth told reporters that the coming days would be decisive, noting Iran had launched fewer projectiles in the past 24 hours than at any point during the war.
A painful quarter
The bounce, however welcome, could not paper over an ugly Q1. Both the Nasdaq and the Dow fell into correction territory during the quarter, weighed down by the Iran conflict and surging oil prices, before recovering on 31 Mar.
The S&P 500 closed out its worst quarter since 2022, ending Q1 down 4.6%. The Nasdaq fared worse, losing 7% in the quarter amid a sharp pullback in technology stocks.
Crypto equities
Crypto-linked stocks tracked the broader risk-on mood on Tuesday, but also ended Q1 having given back large portions of their 2025 gains. They were battered by Bitcoin’s slide from its all-time high of around $125,000 last October to around $68,000.
Bitcoin was trading at around $69,100 as of 07:10UTC, up 1.3% on the day, though it still ended Q1 down 22% for the year.
During the quarter, crypto-linked equities took a hit across the board as Bitcoin volatility intensified amid geopolitical tensions and weakening investor sentiment caused by regulatory uncertainty around the US proposed stablecoin legislation.
Bitcoin treasury company Strategy (MSTR) closed at $124.82, up 2.8% for the day but still down 21% for the year. Exchange operator Coinbase (COIN) surged 8.6% to close at $174.61. Despite the session’s strength, the stock is still down 26% year-to-date, well below the all-time highs it reached in July 2025. Galaxy Digital (GLXY) added 7.6% to end at $18.45, though the digital assets company closed out Q1 down 26%.
