U.S. Stocks Likely To Rally On News Of U.S.-Iran Ceasefire

The major U.S. index futures are currently pointing to a sharply higher open on Wednesday, with stocks likely to show a substantial move to the upside in early trading.

News that the U.S., Israel and Iran have agreed to a two-week ceasefire is likely to generate considerable buying interest early in the session.

In a Truth Social post Tuesday evening, President Donald Trump said he has agreed to suspend the bombing and attack of Iran for a period of two weeks subject to Tehran agreeing to the complete, immediate and safe opening of the Strait of Hormuz.

Trump said the U.S. has received 10-point proposal from Iran that he believes is a “workable basis on which to negotiate” and said the two-week ceasefire will allow the agreement to be finalized and consummated.

A subsequent statement from Iran’s Foreign Minister Abbas Araghchi indicated the Strait of Hormuz will be reopened for a period of two weeks if the attacks against Iran are halted.

The news has contributed to a nosedive by the price of crude oil, with U.S. crude oil futures plunging by more than 17 percent and dropping well below $100 a barrel.

“The positive market reaction is understandable as a two-week ceasefire raises hope for a complete end to the conflict,” said Dan Coatsworth, head of markets at AJ Bell.

“The ceasefire gives the world a moment to breathe and take stock of events,” he added. “Unfortunately, there is no guarantee that everything will return to normal.”

After coming under pressure early in the session, stocks regained ground over the course of the trading day on Tuesday. The major averages climbed well off their lows of the session before eventually closing narrowly mixed.

The Nasdaq inched up 21.51 points or 0.1 percent to 22,017.85 and the S&P 500 crept up 5.02 points or 0.1 percent to 6,616.85, while the narrower Dow dipped 85.42 points or 0.2 percent to 46,584.46.

Stocks showed a notable move to the upside late in the trading day after Pakistani Prime Minister Shehbaz Sharif called on President Donald Trump to extend his deadline for Iran to reopen the Strait of Hormuz by two weeks to “allow diplomacy to run its course.”

In a post on X, Sharif also asked Iran to reopen the Strait of Hormuz for a corresponding period of two weeks as a “goodwill gesture.”

“We also urge all warring parties to observe a ceasefire everywhere for two weeks to allow diplomacy to achieve conclusive termination of war, in the interest of long-term peace and stability in the region,” Sharif said.

While Trump and Iran’s responses to Sharif’s requests are currently unknown, the post helped ease concerns about an escalation of the conflict following the president’s latest threats.

Trump had threatened to attack Iran’s power plants and bridges if Tehran fails to reach a deal and reopen the Strait of Hormuz by 8 pm ET.

Continuing to ramp up his rhetoric, Trump warned in a post on Truth Social, “A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will.”

The president claimed that a “different, smarter, and less radicalized” regime is now in charge of Iran and suggested something revolutionarily wonderful can happen.

“WHO KNOWS?” Trump posted, adding to uncertainty on Wall Street. “We will find out tonight, one of the most important moments in the long and complex history of the World.”

Networking stocks moved sharply higher over the course of the session, driving the NYSE Arca Networking Index up by 2.4 percent to a record closing high.

Significant strength was also visible among oil service stocks, as reflected by the 1.7 percent gain posted by the Philadelphia Oil Service Index.

Transportation and semiconductor stocks also turned in strong performances on the day, while housing and telecom stocks showed notable moves to the downside.

Commodity, Currency Markets

Crude oil futures are plummeting $19.41 to $93.54 a barrel after climbing $0.54 to $112.95 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,818, up $133.30 compared to the previous session’s close of $4,684.70. On Tuesday, gold closed unchanged.

On the currency front, the U.S. dollar is trading at 158.01 yen compared to the 159.61 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1712 compared to yesterday’s $1.1594.

Asia

Asian stocks skyrocketed on Wednesday after the U.S. and Iran agreed to a conditional two-week ceasefire, during which shipping traffic will be allowed through the Strait of Hormuz.

Oil prices crashed below $100 a barrel as the last-minute ceasefire agreement helped ease fears of an immediate supply shock. Despite the truce, there were reports of missile and drone threats elsewhere in the region.

Tehran said its 10-point plan for securing an end to the war with the United States would require “continued Iranian control over the Strait of Hormuz, acceptance of uranium enrichment and the lifting of all primary and secondary sanctions.”

Ahead of direct negotiations scheduled to begin in Islamabad, U.S. President Donald Trump publicly accepted that Iran’s 10-point ceasefire plan is workable.

The dollar tumbled in Asian trading and oil prices slumped nearly 13 percent, while gold surged to three-week highs amid the easing of tensions in the Middle East.

China’s Shanghai Composite Index rallied 2.7 percent to 3,995 as investors reacted positively to the latest developments in the Israel-U.S.-Iran war. Hong Kong’s Hang Seng Index surged 3.1 percent to 25,893.02. Index heavyweight Meituan soared 10.3 percent on easing regulatory risks.

Japanese markets soared on bets that falling oil prices will help contain inflation and revive economic growth. The Nikkei 225 Index spiked 5.4 percent to 56,308.42, while the broader Topix Index settled 3.3 percent higher at 3,775.30.

Furukawa Electric shares surged 17.6 percent, Advantest gained 13.6 percent and Resonac Holdings added 8.4 percent.

Seoul stocks surged, with the Kospi soaring 6.9 percent to 5,872.34, closing above the 5,800 level for the first time in three weeks.

Samsung Electronics, which reported a record first-quarter operating profit of 57 trillion won a day earlier, soared 7.1 percent while peer SK Hynix rallied 12.8 percent.

Australian stocks hit a five-week high as the last-minute U.S.-Iran ceasefire helped ease inflation concerns.

The benchmark S&P/ASX 200 Index jumped 2.6 percent to 8,951.80, marking its highest level since March 3 and scoring its biggest single-day gain in a year. The broader All Ordinaries Index closed 2.7 percent higher at 9,165.70, led by banks and mining stocks.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 Index rose 1.4 percent to 13,253.94, hitting a three-week high as the country’s central bank left its cash rate unchanged but warned of a decisive move if inflation pressures intensify.

Europe

European stocks have soared on Wednesday as a two-week Middle East ceasefire helped ease fears of supply disruptions in oil markets and tempered inflation concerns.

Brent crude prices slumped 14 percent toward $90 a barrel on hopes that oil and gas flows through the Strait of Hormuz could soon resume.

In economic news, German factory orders recovered in February, albeit at a slower than expected pace, ahead of the war in Iran, data from Destatis revealed.

Driven by the substantial growth in the auto industry, factory orders grew 0.9 percent on a monthly basis in February, in contrast to the 11.1 percent decline in January.

Overall factory orders logged an annual growth of 3.5 percent in February after rising 0.3 percent in January.

Elsewhere, U.K. house prices decreased 0.5 percent on a monthly basis in March, reversing February’s 0.3 percent increase as the Iran conflict pushed up inflation expectations and dampened hopes of interest rate reductions, data from the mortgage lender Halifax showed.

On a yearly basis, house price growth eased to 0.8 percent in March from 1.2 percent in February.

The German DAX Index is up by 4.9 percent, the French CAC 40 Index is up by 4.6 percent and the U.K.’s FTSE 100 Index is up by 2.8 percent.

Banks topped the gainers list, with Commerzbank, Deutsche Bank, BNP Paribas and Credit Agricole moving sharply higher.

German drug discovery and development company Evotec has also soared after reporting 2025 results in line with expectations and reiterating its outlook.

French train manufacturer Alstom has also surged after winning a signaling order in Europe valued at approximately €295 million.

Spirts maker Remy Cointreau has also shown a strong move to the upside after announcing organizational changes.

Drugmaker GSK has also risen in London after receiving Chinese approval for Exdensur, the first ultra-long-acting biologic for chronic rhinosinusitis with nasal polyps.

U.S. Economic News

The Energy Information Administration is scheduled to release its report on oil inventories in the week ended April 3rd at 10:30 am ET. Crude oil inventories are expected to inch up by 0.7 million barrels.

At 1 pm ET, the Treasury Department is due to announce the results of this month’s auction of $39 billion worth of ten-year notes.

The Federal Reserve is scheduled to release the minutes of its March 17-18 monetary policy meeting at 2 pm ET.