Stock market today: Dow, S&P 500, Nasdaq rebound on hopes of Iran deescalation as bitcoin surges

March 5, 2026 - 00:36

Major U.S. stock indices rallied strongly on Monday, recovering from last week's steep losses, as geopolitical tensions in the Middle East showed tentative signs of easing. Investor sentiment improved markedly on reports that diplomatic channels may be opening to prevent a wider regional conflict.

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed significantly higher, led by a rebound in technology and growth stocks. The shift in mood was attributed to growing market hopes that Iran may seek a path to de-escalate hostilities following recent events. Investors are weighing reports that Iran has indirectly approached the U.S. to discuss terms for ending the conflict, a development that alleviated some of the premium built into oil prices and risk assets.

In a notable parallel move, Bitcoin surged alongside equities, breaking a recent correlation with traditional safe havens like gold. The cryptocurrency's jump signaled a broad return of risk appetite among traders. The rally was widespread, though market participants remain cautious, acknowledging that the situation remains fluid and sensitive to headlines. The day's gains provided a welcome respite, but analysts warn that volatility is likely to persist until a more durable diplomatic resolution is in sight.