NEW YORK — Major U.S. stock indexes surged on March 31, 2026, with the S&P 500 closing up 2.9%, the Nasdaq Composite rising 3.8%, and the Dow Jones Industrial Average gaining 1,125 points. The rally capped a shortened trading week in which all three indexes posted gains, though it was not enough to offset steep losses accumulated throughout the month of March.

The S&P 500 fell 5.09% for the month, while the Nasdaq declined 4.75%. For the full first quarter of 2026, the S&P 500 dropped 4.6% and the Nasdaq fell 7.1%, marking their worst quarterly performances since the first quarter of 2022.

For the shortened trading week ending March 31, the Nasdaq finished up 4.44%, the S&P 500 climbed 3.36%, and the Dow finished 2.96% higher. The technology sector outperformed the energy sector during that week.

The stock market's volatile month coincided with a surge in oil prices. Brent crude oil posted its largest monthly percentage increase on record in March 2026, rising by more than 60%. U.S. West Texas Intermediate crude oil climbed more than 50% during the same period, marking its biggest one-month gain since 2020. The average price of unleaded gasoline in the United States hit $4 per gallon on March 31, an increase of more than 34% over the four weeks ending that day.

The oil price increases occurred as the United States and Israel were conducting a war against Iran. The Strait of Hormuz, a narrow waterway controlled by Iran through which approximately one-fifth of the world's crude oil typically transits each day, has been a focus of concern over energy supply disruptions.

"Stocks have been following the lead of oil prices at an unprecedented rate over the last several weeks, and if the U.S. just walked away from the Middle East with the Strait still blockaded, energy markets would likely remain incredibly supply-constrained, keeping prices high," analysts at Bespoke Investment Group wrote.

"The longer prices are high and supplies are limited, the worse it's going to be for the global economy and ultimately stock prices," the Bespoke analysts wrote.

More than half of all adults in the U.S. own stocks, according to one estimate.