New Delhi, March 24 -- U.S. stocks booked one of the biggest single-day gains of the year on Monday, as investors reacted to suggestions of a potential winddown of military action in the Gulf region that could end the war and ultimately reopen the Strait of Hormuz.

The S&P 500, however, remains pegged near the lowest levels in six months, and is down more than 5% from the all-time peak it reached in late January, as investors worry that a lingering conflict will keep oil prices elevated, stoke inflation pressures and weigh on growth prospects in the world's biggest economy.

Nonetheless, Monday's reaction does suggest that investors are primed to respond to news that President Donald Trump is nearing the point where he can declare victor...