Deutsche Bank analysts highlight a powerful rebound in US equities, with the S&P 500 posting its best daily gain since May last year as Iran-related headlines boosted risk sentiment. Tech, airlines and breadth indicators all improved, while volatility fell sharply, and CBOE Volatility Index (VIX) saw its biggest daily decline since last April.

US equities surge as volatility retreats

"What had been a torrid month of March for markets ended on a positive note yesterday, as the S&P 500 (+2.91%) posted its best day since last May as comments by US and Iranian officials drove hopes that an end to the Iran war could be coming closer into view."

"...US equities delivered a stunning rebound as the S&P 500 rose by +2.91%, its best day since May 12 last year, the day that US and China agreed to defuse their post-Liberation Day tariff escalation."

"The NASDAQ (+3.83%) and the Mag-7 (+4.48%) outperformed as tech stocks led the gains, while the S&P 500 airlines sector rebounded by +5.77%."

"The rally was also a broad one, with 421 advancers in the S&P 500, the most year-to-date, while the VIX index (-5.36pts to 25.25) saw its biggest daily decline since last April."

"Yesterday’s cross-asset rally came at the end of what has been a pretty torrid month and quarter for markets..."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)