U.S. stocks pulled back on Tuesday, March 24, surrendering a portion of Monday’s sharp relief rally gains as oil prices surged back above $100 per barrel and confusion grew over the status of U.S.-Iran peace talks. Meanwhile, European stocks closed marginally higher in a choppy session, with oil and gas stocks leading gains across the continent.
U.S. Markets Overview
| Index | Close | Change | % Change |
|---|---|---|---|
| S&P 500 | 6,556.37 | −24.47 | −0.37% |
| Dow Jones | 46,124.06 | −84.41 | −0.18% |
| Nasdaq Composite | 21,761.89 | −184.31 | −0.84% |
Source: CNBC
What Moved Markets: Iran Negotiations in Focus
Stocks opened sharply lower — the Dow shed 385 points and the S&P 500 and Nasdaq each dropped 0.7% at the open — as investors grew skeptical about the credibility of U.S.-Iran de-escalation talks. Markets had staged a powerful relief rally on Monday after President Trump wrote on Truth Social that the two sides had held “very good and productive conversations” about a resolution to the Middle East conflict.
However, Iranian state media denied any direct talks had taken place, and Israel and Iran continued to exchange strikes throughout Tuesday. The Pentagon is also reportedly planning to deploy around 3,000 soldiers to the Middle East, though no final decision on ground forces has been made.
In a pivotal development after the close, The New York Times reported that the U.S. has sent Iran a 15-point peace plan to end the war, delivered through Pakistan. The report lifted stock futures sharply in after-hours trading — Dow futures jumped 320 points (+0.7%), S&P 500 futures rose 0.7%, and Nasdaq 100 futures climbed 0.9%.
Adding to the geopolitical drama, Pakistani Prime Minister Shehbaz Sharif offered to host peace talks between Washington and Tehran. Meanwhile, The Wall Street Journal reported that Saudi Arabia and the UAE are moving closer to joining the fight against Iran — Saudi Crown Prince Mohammed bin Salman is reportedly close to a decision to participate.
Oil & Energy: Brent Surges Past $104
Oil prices resumed their upward march on Tuesday, erasing Monday’s historic single-day plunge as geopolitical uncertainty persisted:
| Commodity | Settlement | Change |
|---|---|---|
| Brent Crude (May) | $104.49/bbl | +4.55% |
| WTI Crude (May) | $92.35/bbl | +4.79% |
| Spot Gold | ~$4,404.79/oz | ≈ Flat |
Source: CNBC
Michael Kantrowitz, chief investment strategist at Piper Sandler, described the current environment as “just an oil-driven, one-variable market.”
“Oil and interest rates are driving the equity market. The U.S. economy can certainly handle $90, $100 oil. I’m a little more concerned about interest rates and the fear of persistent inflation weighing on equity multiples.”
— Michael Kantrowitz, Piper Sandler, on CNBC’s Closing Bell: Overtime
Six energy stocks hit all-time highs during Tuesday’s session, underscoring the sector’s dominance:
- ExxonMobil (XOM) — highs back to its 1920 NYSE listing
- Chevron (CVX) — highs back to its merger with Texaco in 2000
- Marathon Petroleum (MPC) — highs back to its 2011 spinoff
- Phillips 66 (PSX) — all-time high back to its 2013 IPO
- EQT Corp (EQT) — highs back to its 1950 NYSE listing
- Corteva (CTVA) — highs back to its 2019 spinoff from DowDuPont
Energy was the S&P 500’s top-performing sector for the session (+2%) and the only sector in positive territory month-to-date, with gains exceeding 9% in March.
Sector Performance & Notable Movers
| Sector / Name | Change | Notes |
|---|---|---|
| Energy | +2.0% | Top S&P 500 sector; 6 stocks at ATH |
| Software (IGV ETF) | −4.29% | Down 23% YTD on AI disruption fears |
| Salesforce (CRM) | −5%+ | Continued software selloff |
| ServiceNow (NOW) | −4%+ | AI disruption risk repricing |
| Circle (CRCL) | −19% | Worst day ever; Clarity Act may limit stablecoin yield |
| Coinbase (COIN) | −9% | Dragged down by Circle stablecoin concerns |
| Oracle (ORCL) | −4% | Down ~24% YTD on debt-fueled AI spending worries |
| Jefferies (JEF) | +3% | Potential Sumitomo Mitsui takeover (FT) |
| Netgear (NTGR) | +11% | FCC bans foreign-made consumer routers |
Bond Market: Treasury Yields Spike on Weak Auction
Treasury yields surged on Tuesday after a “weak” 2-year auction, according to BMO, which noted less non-dealer bidding than average:
| Treasury | Yield | Change |
|---|---|---|
| 2-Year | 3.944% | +11 bps |
| 10-Year | 4.420% | +8 bps |
Source: CNBC
Rising yields, driven by persistent inflation fears from elevated oil prices, added pressure to growth and technology stocks throughout the session.
European Markets: Stoxx 600 Closes Higher in Choppy Session
European shares endured a choppy session, oscillating above and below the flatline before closing marginally higher. The pan-European Stoxx 600 ended up approximately 0.5%, reversing earlier losses as oil and gas stocks, telecoms, and chemicals led gains. Miners, industrials, and retail stocks lagged the broader index.
| Index | Change | Notes |
|---|---|---|
| STOXX 600 | +~0.5% | Reversed earlier losses; oil & gas led |
| FTSE 100 | Positive | Energy heavyweights lifted index |
| DAX | Mixed | Germany manufacturing PMI data released |
| CAC 40 | Positive | Broad-based gains across sectors |
Source: CNBC
Key European Movers
- Puig (PUGBY) +13.4% — Shares surged after Estée Lauder confirmed it is in merger talks with the Spanish beauty conglomerate (owner of Jean Paul Gaultier, Charlotte Tilbury, Rabanne).
- Bellway (BWY) −17.5% — The U.K. homebuilder plunged after warning of “volatility” in the mortgage market caused by inflationary cost pressure, with operating margins eroding by 50 basis points.
Private Credit Stress: Apollo & KKR in the Spotlight
Signs of strain in the private credit market continued to emerge:
- Apollo (APO) −3%+ — Apollo’s $15 billion private credit fund capped withdrawals at just 45% of requests. Redemption requests totaled 11.2% of shares — more than double the 5% quarterly limit.
- FS KKR Capital (FSK) −3.3% — Moody’s downgraded the private credit fund to junk (Ba1 from Baa3), citing worsening asset quality and non-accrual loans rising to 5.5% of total investments.
DoubleLine Capital CEO Jeffrey Gundlach described the current environment as a “going nowhere” market, noting “almost nothing is up” and “nothing has really made much money over the past nine months.”
Retail Investor Sentiment: First Net Selling Since 2023
Monday marked an “inflection point” for retail investors, according to VandaTrack. Everyday traders sold more than $20 million worth of single stocks on balance — the first day of net selling since November 2023. The trend reflects gradually receding retail participation since the start of the U.S.-Iran conflict, alongside systematic deleveraging.
After-Hours & Earnings
| Company | After-Hours Move | Details |
|---|---|---|
| KB Home (KBH) | −5% | Q1 EPS 52¢ (est. 55¢); revenue $1.08B (est. $1.10B) |
| GameStop (GME) | ~Flat | Q4 revenue $1.10B (vs $1.28B YoY); adjusted EPS 49¢ beat |
| Braze (BRZE) | +19% | Q4 revenue $205.2M beat (est. $198.2M); strong guidance |
What to Watch Wednesday
- Earnings: Chewy (CHWY) and Paychex (PAYX) report before the bell
- Economic Data: February export and import price indexes
- Geopolitics: Market reaction to the reported 15-point U.S.-Iran peace plan; Pakistan’s offer to host talks
- Oil: Crude oil inventory data; whether Brent holds above $100
“If the S&P [500] closes below 6,500, you probably will see some more downside.”
— Terry Sandven, Chief Equity Strategist at U.S. Bank Asset Management, via CNBC
All data sourced from CNBC, CNBC After-Hours, CNBC Europe Markets, Investing.com. Images credited to their original sources.