US equities surged Tuesday as traders reacted to Iran’s potential peace overture, with the S&P 500 climbing 1.2% amid heightened optimism. The rally followed Iran’s state media announcing President Hassan Rouhani’s willingness to end the proxy conflict with the US, a development that had previously kept markets on edge. Market volatility spiked as investors scrambled to reassess portfolios, particularly in sectors tied to energy and defense. Investor confidence appeared to rebound, with tech and consumer discretionary stocks leading gains, reflecting hopes for reduced geopolitical risk.