US stocks close sharply higher on US-Iran ceasefire
Major U.S. stock indexes rose Wednesday following a two-week ceasefire deal between the U.S. and Iran. The agreement led to a sharp drop in global oil prices.
Major equity markets in the United States closed sharply higher on Wednesday following the announcement of a two-week ceasefire agreement with Iran. The deal, brokered by Pakistan, provided immediate relief to investors who had been grappling with the economic fallout of a conflict that began with joint strikes by the U.S. and Israel in late February. Market sentiment improved significantly as the prospect of reopening the Strait of Hormuz emerged, potentially stabilizing global oil supplies. The SPDR S&P 500 ETF TRUST gained 2.52% to end at 6,783.48 points, while the Nasdaq Composite gained 2.82% and the Dow Jones Industrial Average climbed 2.85%. Small-cap stocks also rallied, with the X RUSSELL 2000 1C outperforming its larger-cap peers. > It’s an expected move today and theres still a lot of work to do, but I think the market is quite relieved. The de-escalation led to a sharp decline in energy prices, with Brent Crude Oil futures falling 13.3% to settle below the $100 per barrel mark. This shift particularly benefited international markets, which had been more vulnerable to energy and food supply shocks. > So this is a much bigger near-term relief for international stocks. In the corporate sector, travel and leisure stocks saw a robust recovery. DELTA AIR LINES INC advanced despite maintaining a cautious annual outlook due to previous war-related uncertainties. Other carriers, including SOUTHWEST AIRLINES CO and UNITED AIRLINES HOLDINGS INC, also saw their share prices climb. The cruise industry followed suit, with significant gains reported for CARNIVAL CORP and NORWEGIAN CRUISE LINE HOLDIN. Meanwhile, LEVI STRAUSS & CO- CLASS A shares jumped after the company raised its full-year sales and profit guidance. While the ceasefire sparked a rally, the Federal Reserve remains cautious. Minutes from the central bank's March meeting revealed an increased openness to interest rate hikes as officials adjusted their 2026 inflation expectations in response to the recent geopolitical volatility.
